PRIME Minister Philip ‘Brave’ Davis speaking in the House of Assembly yesterday. Photo: Austin Fernander
By LEANDRA ROLLE
Tribune Staff Reporter
lrolle@tribunemedia.net
AFTER the collapse of FTX, Prime Minister Phillip “Brave” Davis said he has ordered that local investigations be of the highest order and given precedence, adding that investigations will be a coordinated effort with “duly appointed authorities” in other jurisdictions.
He also said government officials have not identified any deficiencies in the nation’s regulatory framework that could have prevented FTX’s implosion.
“As you know, the FTX group has one entity which is regulated in The Bahamas, FTX Digital Markets Limited,” Mr Davis revealed in the House of Assembly yesterday in his first public remarks on the ongoing saga.
“This entity’s registration has been suspended and it was put in provisional liquidation. The FTX group and affiliates all now appear to be subject to insolvency proceedings pending in Nassau and in the United States.“
This comes as local and international investigations continue into the embattled cryptocurrency exchange following reports that it mishandled customers’ funds. A bipartisan hearing into matters related to FTX is set to take place in the US next month.
The hearing was announced in a statement released yesterday from the US House Financial Services Committee, whose chairwoman is Congresswoman Maxine Waters.
The body will be hearing testimony from all individuals and companies involved with FTX’s fall out, including FTX founder Sam Bankman-Fried - who has since resigned as CEO of the company and committed himself to doing right by his customers in the aftermath of the company’s collapse.
Meanwhile, local regulators last week moved to protect clients of The Bahamas’ flagship crypto currency investor by “freezing” its assets and just recently received court approval to appoint joint provisional liquidators.
“There are reports that FTX has mismanaged customer assets, and numerous investigations have begun into the reported actions and actors in several countries, including by our own Securities Commission and the Financial Crimes Investigation Branch,” Mr Davis continued.
“I note that The Bahamas did not have sole oversight of FTX’s worldwide operation. I have given directions that these proceedings and investigations are to be of the highest order and given precedence, given the amounts involved and because committed and rigorous oversight is of national importance.
“We will be coordinating these efforts with duly appointed authorities in other jurisdictions.”
Mr Davis explained that there have been “booms and busts” in the crypto world and even pointed to several crypto tokens and global companies that have suffered similar fates over the last several months.
The prime minister also addressed concerns about the future of the nation’s digital asset management sector in view of FTX’s collapse, insisting that he had every confidence The Bahamas will emerge from proceedings related to FTX with an enhanced reputation as a solid digital assets jurisdiction.
He also noted that based on analysis of the crisis, government officials have not identified any deficiencies in the nation’s regulatory framework that could have avoided the current situation.
“In fact, it was because The Bahamas already had in place a regulatory framework for digital assets and digital asset businesses, that the regulator was able to take immediate steps in order to protect the interests of clients, creditors, and other stakeholders globally,” Prime Minister Davis also said.
“The Bahamas was already on track to update the regulatory framework before year’s end, to address lessons learned as a result of this year’s crypto winter.”
“No doubt, as the various jurisdictions involved unravel the actions that led to this moment, we will be among the first jurisdictions to gain and put to use valuable insights, allowing us to further strengthen our framework.”
Mr Davis also asked “those who care about our country’s reputation” to tread carefully when speaking about matters related to FTX, saying the situation was “very complex and still unfolding.”
Responding to Mr Davis’ communication, Free National Movement Leader and Marco City MP Michael Pintard told parliamentarians that he was stunned “at the brevity and to a large extent, the hollowness” of the prime minister’s remarks on FTX’s collapse.
He added: “We are facing a substantial risk to our financial services sector and one would’ve expected that since the international community’s eyes are trained on the Commonwealth of The Bahamas that on this occasion that this Davis-Cooper administration would’ve thought it necessary to break its silence much earlier with a far more comprehensive statement given the gravity of this.”
However, Mr Davis, rising on a point of order, called for Mr Pintard to listen carefully to what he had actually said.
“When the facts are unfolding, you don’t jump ahead of yourself to make these cheap political shots,” he stressed.
“Understand what the facts are, they are still unfolding - and you have to be careful with what you’re saying because the matter is still before the courts so I try to be as sanguine as possible so as not to say that I am influencing the procedures going on at the court. That’s why brevity. That’s why I just settled to say the facts and that’s what responsibility says on my part.”
Comments
SP 1 year, 5 months ago
While Alfred Sears stand around talking bullshyt, the Dominican Republic is doing what a "RESPONSIBLE GOVERNMENT" should do about their Haitian invasion:
(Reuters) - The Dominican Republic is stepping up deportations of Haitians and is creating a police unit focused on foreigners, fueling tensions between the two Caribbean nations whose relations have for decades been marred by migration disputes.
Dominican President Luis Abinader last week issued a decree calling for stepped-up migration protocols enforcement and the creation of a police unit to investigate foreigners living in "illegal land occupations."
Our government are simply "LOUSY FACILITATORS"
Porcupine 1 year, 5 months ago
"The prime minister also addressed concerns about the future of the nation’s digital asset management sector in view of FTX’s collapse, insisting that he had every confidence The Bahamas will emerge from proceedings related to FTX with an enhanced reputation as a solid digital assets jurisdiction."
"He also said government officials have not identified any deficiencies in the nation’s regulatory framework that could have prevented FTX’s implosion."
No doubt, as the various jurisdictions involved unravel the actions that led to this moment, we will be among the first jurisdictions to gain and put to use valuable insights, allowing us to further strengthen our framework.”
Just like we did for Fyre Festival, OBAN, Baha Mar, (BPC) Bahamas Petroleum Company, and on and on and on.
Don't be worried about The Bahamas reputation, Mr. Davis. The rest of the world is quite well aware of how we operate. Try cashing a Bahamian check in another country, or using a Bahamian issued credit card online. So yeah, please opposition, do not besmirch our stellar reputation.
If this was so well regulated, and so promising for The Bahamas, why weren't Bahamians told that they should go all in personally? Like we do for our national low risk web shop gaming, where ALL Bahamians are WINNERS.
John 1 year, 5 months ago
NBA players and officials are also caught up in this Saga as several, including Steph Curry, have been named for making investments in FTX, that are unauthorized in the state of Florida.
KapunkleUp 1 year, 5 months ago
First mistake was allowing these kind of companies in. Now government WANTS to be the lead in the bankruptcy proceedings instead of stepping back and letting the US courts handle this clusterf**k. Arrogance and stupidity never dies.
KapunkleUp 1 year, 5 months ago
From the Wall Street Journal today - “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Mr. Ray said in the court filing. “From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.” - The key phrase being "FAULTY REGULATORY OVERSIGHT ABROAD".
DDK 1 year, 5 months ago
🤣🤣🤣🤣
Proguing 1 year, 5 months ago
There is some other interesting info in that article:
Appointed at FTX’s Chapter 11 filing last Friday, the seasoned bankruptcy chief said FTX saw at least $372 million of "unauthorized transactions" just hours into his position as the platform’s new CEO. The firm has since put blockchain analytics company, Chainalysis, on the case.
Last week, the WSJ reported FTX could be missing up to $10 billion due to the decision by former FTX CEO Sam Bankman-Fried and others to use customer funds to make payments owed by sibling trading firm Alameda Research.
As for taming FTX's balance sheet, that might not happen any time soon, according to Ray, who raised questions around the accuracy of the failed enterprise's financials, including FTX US, FTX, and Alameda.
"Because this balance sheet was produced while the Debtors were controlled by Mr. Bankman-Fried, I do not have confidence in it, and the information therein may not be correct as of the date stated," Ray wrote at several points in the document.
One reason is because there is little to no paper trail for key management decisions, the liquidator pointed out.
“Mr. Bankman-Fried often communicated by using applications that were set to auto-delete after a short period of time, and encouraged employees to do the same," he stated.
FTX “did not maintain centralized control of its cash” and failed to keep an accurate list of bank accounts and account signatories, or pay sufficient attention to the creditworthiness of banking partners, according to Ray. Advisers don’t yet know how much cash FTX Group had when it filed for bankruptcy, but has found about $560 million attributable to various FTX entities so far.
"In the Bahamas, I understand that corporate funds of the FTX Group were used to purchase homes and other personal items for employees and advisors. I understand that there does not appear to be documentation for certain of these transactions as loans, and that certain real estate was recorded in the personal name of these employees and advisors on the records of the Bahamas," Ray said, who also noted that the company didn't have appropriate corporate governance and never held board meetings. There was no accurate list of bank accounts and account signatories, as well as insufficient attention paid to the creditworthiness of banking partners.
Ray said the company did not have “an accurate list” of its own bank
ThisIsOurs 1 year, 5 months ago
I kept saying over and over again this has nothing to do with crypto and complexity. This is ALL about what a group of extremely rich kids were allowed to get away with in the Bahamas. My first question when I heard the statement, "I miscalculated the margins" was, where was the Risk Manager. And the Securities Commission "did everything possible"?? This guy took 2 days to come to this conclusion, "regulation abject failure". BEC's entire board was fired for much much less
Sickened 1 year, 5 months ago
Certainly looks like it.
TalRussell 1 year, 5 months ago
I think there is no mystery behind why Media Houses' are just ignoring FTX's "calendar date." 23 September 2021. Like why they do many things.
In the immediate meantime, is there a faint chance FTX's in-house psychiatrist - said be currently living in the colon - will be invited to be a live-on-air guest on the Guardian's popoular Talk Radio The Revolution with Comrade Juan "Mr. Carmichael" ---- Yes?
.
ThisIsOurs 1 year, 5 months ago
I have to repeat this from @kapunkleup, almost fell out of my chair when I heard Juan McCartney read it
"From compromised systems integrity and FAULTY REGULATORY CONTROL ABROAD to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”
We could fool ourselves however we want and spin a story for our people to hear. The data will always tell the story. Less than 24hrs after our PM told parliament they could find no fault with the regulatory procedures. Maybe he meant what was written on paper as to be done but not necessarily what was actually done
ThisIsOurs 1 year, 5 months ago
Btw, have you noticed parliament suddenly working on all the issues we've been asking about. I wouldnt be surprised if they bulldozed all the shanty towns tomorrow
LastManStanding 1 year, 5 months ago
Speaks volumes that SBF is currently not in Fox Hill.
ThisIsOurs 1 year, 5 months ago
I believe we're on the cusp of hearing about some weird goings on at the cocktail parties. Remember Sam said he was ordered by the regulators to pay back money to Bahamian clients? Then the SC came out and said they never gave such an order! This Ray guy says "a state actor" appears to have authorized the withdrawals. I een see the documents he see, but what I saw was Sam doesnt appear to be devious, and was it in the realm of possibilities that someone from the Blue House called and said give so and so their money. I notice the police open an investigation but een speak to a single person yet. Blue House orders again I suspect
LastManStanding 1 year, 5 months ago
John Ray was the man who cleaned up in the aftermath of Enron many years ago; if he says its bad, its probably worse than any of us can imagine. A whole lot of dirt is for sure is going to come to the light from this.
John 1 year, 5 months ago
So let’s get this part straight: we go in nvest in FTX. You and me get swing by the same company. Probably out of millions. Then you turn around and sue me because you now saying you would’ve never invested in that company if you didn’t see me or hear about me investing in it. Well monkey foots.
ThisIsOurs 1 year, 5 months ago
Elizabeth Warren on the case. Everything coming to light. Should have come clean from last week. This gonna be a mess highlighting our banana manipulating republic
Maximilianotto 1 year, 5 months ago
Question - are the FTX kids already Bahamian citizens? YES/NO?
Porcupine 1 year, 5 months ago
https://www.counterpunch.org/2022/11/...">https://www.counterpunch.org/2022/11/...
ThisIsOurs 1 year, 5 months ago
I hear a number of persons talking about Bahamians they know who invested in FTX. The SC failed them, there should have been very very strong signalling about who this type of investment was suited for and it's not for someone gambling the retirement money.. and if they had an exchange license why didnt the SC pick up that Bahamians were trading? They opened "Bahamian" bank accounts for the purpose so there's an identifiable trail from Bahamian bank accounts to an FTX bank account. This is not a time to be separated but if Brave Davis doesnt announce restructuring this is going to be bad. Move them to Finance, they need people.
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