The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

DEPUTY Prime Minister Chester Cooper yesterday expressed confidence in the Security Commission’s ability to handle matters related to FTX’s fallout, adding “we have had curve balls thrown at us before in financial services and we persevered.”

Mr Cooper, who is also minister of tourism, investments and aviation, was asked to comment on the ongoing FTX saga ahead of yesterday’s Cabinet meeting.

“Let me just say that the prime minister will be speaking to this FTX matter. It’s in his remit as minister of finance. It’s a matter for the regulators. I can tell you though that I am confident in the regulators and I’m confident about the laws governing financial services in The Bahamas,” Mr Cooper told reporters.

 “We have had curve balls thrown at us before in financial services and we persevered. We have pivoted in financial services many times and I expect that we’re going to do likewise in the digital assets business.

 “As it relates to the specifics, as you are well aware, the Securities Commission is handling the matter and anything from the government will come from the minister of finance that happens to be the prime minister.”

 The embattled cryptocurrency exchange is currently being investigated by the US Department of Justice and the Securities and Exchange Commission.

 The probes are said to be focusing on whether FTX founder Sam Bankman-Fried - who has since resigned from his role as CEO of the company - and FTX used customers’ deposits to fund bets and trading activities at his hedge fund, Alameda Research.

 Client funds are supposed to be kept separate from company assets, and there were suggestions the FTX founder has committed the “ultimate sin” by tapping into FTX’s custodial assets to fund Alameda Research.

 In addition to the US investigations, local authorities are also looking into matters related to FTX – among them the Royal Bahamas Police Force and the Securities Commission of The Bahamas.

 Last week, local regulators moved to protect clients of The Bahamas’ flagship crypto currency investor by “freezing” its assets, and seizing control of the company, amid reports FTX acquired $74m in local real estate this year alone.

 Then on Sunday, a statement from the RBPF said police were working with the Securities Commission to investigate if any “criminal misconduct occurred” in view of the collapse of FTX.

 Yesterday, National Security Minister Wayne Munroe refused to comment on ongoing investigations or whether local officials were collaborating with US authorities to assist with their probe.

 However, he was able to confirm that “no one had been detained by police” in relation to the matter.

 Prime Minister Philip “Brave” Davis had previously said his administration was working with FTX to structure The Bahamas’ blue carbon credits and exploring the creation of a carbon credit exchange with it where these securities could be traded.

 Since the collapse of FTX, many have raised concerns about the carbon credits in view of what has transpired with the company as well as the impact of FTX’s loss.

 Asked if he thought the fallout would negatively affect The Bahamas, Mr Cooper told reporters yesterday: “We have a very good brand in the international community as it relates to the financial services and as it relates to doing business in The Bahamas and I’m confident that we are going to pivot appropriately and we will persevere.”