Monday, November 28, 2022
By LEANDRA ROLLE
Tribune Staff Reporter
lrolle@tribunemedia.net
ATTORNEY General Ryan Pinder last night defended the country’s digital asset regulations in the wake of international criticisms over its regime following FTX’s collapse, calling assertions that FTX only came to The Bahamas because it was a poorly regulated jurisdiction “shocking” and ignorant.
Mr Pinder also expressed disappointment over “inaccurate allegations” made by John Ray, FTX Trading Ltd’s new chief executive, who said he had “credible evidence” that the Bahamas government “directed unauthorised access” to FTX’s systems, and aided the withdrawal of digital assets.
Mr Ray made the claims in US court filings on November 17.
The Securities Commission has since shot down the characterisation, explaining that it requested control of FTX’s assets and upon court approval, had it transferred to a digital wallet under its management for “safekeeping.”
Yesterday, Mr Pinder called Mr Ray’s remarks “regrettable” and defended the Securities Commission’s decision to protect FTX Digital Markets’ assets for the benefit of clients and creditors.
“It is extremely regrettable that in Chapter 11 filings for bankruptcy protection made in New York last week, that the new chief executive of FTX Trading Ltd – not the Bahamas-based FTX Digital Markets – but an affiliate company incorporated in Antigua and Barbuda—misrepresented the timely action taken by the Securities Commission, and used inaccurate allegations lodged in the transfer motion to do so,” Mr Pinder said.
“It is possible that the prospect of multi-million dollar legal and consultant fees is driving both their legal strategy and the intemperate statements. In any case, we urge prudence and accuracy in all future filings.”
The attorney general spoke on the FTX saga during a televised national address yesterday.
For much of his speech, Mr Pinder addressed international criticisms of this country’s digital asset regulatory regime and also hit out at false claims made about the FTX debacle.
FTX Digital Markets, which is headquartered in The Bahamas, was placed into provisional liquidation earlier this month after experiencing a liquidity crisis, sparked by clients’ simultaneous withdrawal of assets from FTX.
Following its liquidation, FTX, its sister company Alameda Research and dozens of other affiliates filed for a bankruptcy petition in Delaware and FTX founder Sam Bankman-Fried resigned as CEO.
Mr Bankman-Fried has since been replaced by Mr Ray who was appointed to the role after his resignation.
The firm’s collapse has since attracted international attention and sparked investigations by Bahamian and international law agencies, who are now looking to see whether customer funds have been misappropriated or mishandled and whether any laws were violated.
“As is provided for under our regulatory framework, we are already working with a number of specialists and experts, and will continue to do so as the need arises. There are a number of protective measures which the regulator has taken under the authority conferred by the Supreme Court of The Bahamas,” Senator Pinder continued.
“For the time being, we will not set out those measures in any further detail, until we are confident that doing so will not jeopardise any aspect of the ongoing investigations.”
As investigations continue, Mr Pinder advised authorities to exercise “prudence and restraint” while commenting on matters related to FTX, adding that “ill-informed speculation” will not be helpful to anyone involved.
He also hit out at those who have criticised the government for being “silent” on matters regarding FTX’s implosion, explaining that due to ongoing investigations, officials must be careful in how they respond to questions related to the embattled crypto currency exchange.
“The dozens and dozens of companies involved, registered in numerous jurisdictions across the world, the scope of related parties, including some of the world’s most sophisticated investors, demonstrate the cross-border, multi-jurisdictional nature of this event,” Mr Pinder said.
“And it is deeply misguided to conclude that reluctance to communicate the details of an active investigation means that nothing is happening; in fact, the government’s discretion stems from how seriously we take our commitment to the rule of law and the independence of the securities regulator.
“We have been shocked at the ignorance of those who assert that FTX came to The Bahamas because they did not want to submit to regulatory scrutiny; in fact, the world is full of countries in which there is no legislative or regulatory authority over crypto, but The Bahamas is not one of them.”
Mr Pinder added: “We have been able to assert our leadership in this new field because in the digital assets arena, what matters is not the size of your land mass, or the size of your GDP, but the ingenuity and rigour of your people and jurisdiction.
“When a respected risk and market integrity firm ranked the world’s digital assets regulatory regimes earlier this year, our country was first, and for good reason. The digital asset sector is a high profile, embryonic sector of the Bahamian financial services sector, an area where The Bahamas has demonstrated global leadership for decades. As a world-leading destination for tourism, we have been audacious before in asserting that ‘it’s better in The Bahamas.’”
“We will not hesitate to do so again,” he also said.
As for the future of the nation’s digital asset industry, Mr Pinder echoed comments similar to that of Prime Minister Phillip “Brave” Davis, saying he had every confidence The Bahamas will emerge from the FTX’s fall out “in even higher esteem.”
The attorney general also said officials believed this turbulent period will pass and that opportunities for more growth laid ahead for the sector.
“A turbulent crypto-currency period on a global basis, and the downfall of a single Bahamian company, in no way threatens a bright future for The Bahamas. Quite the opposite,” he added.
“Those entrepreneurs who are ready to create new financial products that serve a broader range of consumers, remain welcome to come to The Bahamas. They can be certain that we have in place a principled, fair, comprehensive and ethical regulatory regime. They can also be certain we will act quickly and decisively to enforce it, if and when our laws and regulations are breached. They will see that The Bahamas is a place of laws.
“They will see that the rule of law, and the exercise of due process, characterise the integrity of our jurisdiction. And they will have found yet another reason why, it’s better in The Bahamas,” he concluded.
Comments
temptedbythefruitofanother says...
Steal 9 dollars and buy some food = Fox Hill Prison
Steal 9 Billion dollars and buy 300 million of Bahamas real estate = a panoramic view from an Albany penthouse
hmm......
Posted 28 November 2022, 7:48 a.m. Suggest removal
tribanon says...
Bingo!
Much like the PLP stealing for decades from the people and getting re-elected time and time again.
And most Bahamian voters just can't seem to get enough punishment and cruelty inflicted on them. The D- minus educated among us who suffer the most have yet to figure out they don't decide who to vote for, but rather get told who they can vote for.
As long as the choice at the polls remains limited to a PLP, FNM or McCartney Party candidate, the standard of living and quality of life for D- minus educated Bahamians is going to get worse and worse. Never in our country's history has the divide between the "haves" and the "have nots" been so great both in terms of number and wealth.
Posted 28 November 2022, 8:38 a.m. Suggest removal
SP says...
Bingo my arse! The PLP and FNM paint with the same brush. If that were not true the FNM would have come in and exposed the PLP graft for the previous 5 years in office, however, the FNM cannot expose the PLP graft because they too play by the same system when in power and are equally as guilty as the PLP. They are two sides of the same coin joined at the hip in corruption under the "Sunshine Boys" brand.
Posted 28 November 2022, 5:06 p.m. Suggest removal
ThisIsOurs says...
You cant possibly believe that tribanon was defending the FNM????
Posted 29 November 2022, 3:13 a.m. Suggest removal
Proguing says...
Not even steal 9 dollars, just sell coconuts on the street during a crisis to survive and get arrested because you don't have a business license
Posted 28 November 2022, 10:43 a.m. Suggest removal
One says...
The poor can't afford justice. Seems like everything can be purchased in the Bahamas. If we're a Christain nation we should live by the word of God and not let capitalism overrule.
Posted 28 November 2022, 11:15 a.m. Suggest removal
BMW says...
Only christian on sunday mornings.
Posted 29 November 2022, 8:52 a.m. Suggest removal
birdiestrachan says...
It is good that he spoke to the issue other wise all will have their say right or wrong truth or lies foolish or sense
Posted 28 November 2022, 8:09 a.m. Suggest removal
tribanon says...
This comment was removed by the site staff for violation of the usage agreement.
Posted 28 November 2022, 8:51 a.m.
tribanon says...
LMAO
Posted 28 November 2022, 11:33 p.m. Suggest removal
realfreethinker says...
birdie it's kind of late now.The damage has been done. The horse is out of the barn and galloping around the corner
Posted 28 November 2022, 2:33 p.m. Suggest removal
AnObserver says...
[https://www.ledgerinsights.com/tether-s…
][1]
[https://tether.to/en/tether-banking-rel…
][2]
[https://www.reddit.com/r/Superstonk/com…
][3]
Hmmmm.
So if I am reading this right, FTX was tied at the hip to Tether. Tether was tied at the hip to Deltec. The AG was Deltec's legal counsel while also an MP? Is that correct?
[1]: https://www.ledgerinsights.com/tether-s…
[2]: https://tether.to/en/tether-banking-rel…
[3]: https://www.reddit.com/r/Superstonk/com…
Posted 28 November 2022, 9:30 a.m. Suggest removal
Proguing says...
You are just scratching the surface:
https://coingeek.com/ftx-tether-bahamas…
Posted 28 November 2022, 12:51 p.m. Suggest removal
TalRussell says...
Headline images are being circulated globally of **"A Colony of Out Islands 'AG' Ryan Pinder, Takes The Lead Avoid Turmoil,"** whilst attempts are being taken to downplay, **what locally might've contributed to collapse FTX, of such scope not seen since Edward Teach, became known better as 'Blackbeard the Pirate'.
**Lots of street corners um's and ah's** to indicate that we're not as confident about if there's even the need with bothering to rename the colony's hailed as Crypto's **'Hippie',** Sam *'Bankman'-Field, — Yes?
Posted 28 November 2022, 9:58 a.m. Suggest removal
sheeprunner12 says...
What did the AG say that added to what we already know?
Leo the Lion didn't say why Albany is harbouring the kid and when the Govt will facilitate his extradition to the USA.
If it was a black drug dealer his ass would have been in Miami, Atlanta or NY jail longtime.
Posted 28 November 2022, 11:15 a.m. Suggest removal
Sickened says...
First, the police and feds will have to ask an Albany member to call the gate so that they can get in. Then they are going to have to get an extradition notice approved by Albany AND THEN the Government of The Bahamas can take custody and then contemplate extradition.
All the while SBF will have already hopped aboard a beautiful yacht and motoring to freedom eating stone crab and caviar and sipping on gin and juice - laid back.
Posted 28 November 2022, 1:41 p.m. Suggest removal
TalRussell says...
I must edit my words thrice and post once.
**Is there a chairman of a local bank** with business connection to a US Bank of which is listed amongst FTX long string puzzling subsidiaries?
**And, still local officials expect us to believe** that New York's Southern District's extensive investigations of FTX cryptocurrency which had started several months prior to the collapse of FTX, **would've made contact with a singular Bahamian official,** — Yes?
Posted 28 November 2022, 12:55 p.m. Suggest removal
SP says...
ATTORNEY General Ryan Pinder is just another PLP pirate facilitator he can't help having that **"deer in the headlights"** expression on his face.
Regardless if the PLP or FNM were in power, we would still be facing the same dilemma. In fact, we should soon be finding out the extent of involvement by the rest of the sunshine boys group of pirates!
Posted 28 November 2022, 4:47 p.m. Suggest removal
SP says...
**The Bahamas is not a real place!** Where else in the world **besides Haiti** can politicians get caught red-handed time and time and time again in highly questionable circumstances and get away scot-free with the blessings of the electorate?
Fitzgerald the well-known Baha Mar extortionist is the "senior investment advisor to the PM"? REALLY??
**This is absolute total madness!**
The PLP and FNM have destroyed our country and given what little is left to Haitians, Asians, Latinos, and Africans while Bahamians sit around starving, turning to crime for survival, and still unable to provide for our families.
Posted 28 November 2022, 5:15 p.m. Suggest removal
Sickened says...
We aren't the only country where the slime rises to the top. What's unfortunate is that we live here.
Posted 29 November 2022, 8:58 a.m. Suggest removal
TalRussell says...
Ripped off investors legal teams are already eyeing legal actions against major celebrities who aided in FTX massive fraud and there's no reason believe that Bahamian bankers, lawyers, accountants, realtors won't be among the man locals that will not be targeted and their anger only will increase as local officials continue pretend it all was just a poor management of clients $1+ billion dollars.
.
Hard sell for local officials when all the while Sam Bankerman-Fried was flying around in $33 million dollar luxury private, partying in Albany $40 million Condo. whilst going on Bahamian real estate buying sprees.
Yet our police are quick arrest, charge and seek 3+ years imprisonment of Coconut Water Seller, along with our colony's Homeless, Blind and the Mentally Challenged.Well yes, indeed. Hopefully it goin' those who's the real mentally++ greed damaged that will face stiff **Coconut Water Justice.**
Walking about Bay Street whilst pretending that FTX missing a Billion+ of Dollars was a result of inexperienced management is not sufficient to duck Coconut Water Justice, — Yes?
Posted 28 November 2022, 8:43 p.m. Suggest removal
ThisIsOurs says...
Re tourist death in Exuma: "*There’s nothing mysterious about the death,” Mr Cooper continued. The information will reveal itself in due course. The police (are) continuing their investigations. They will release the findings. I won’t endeavour to speak on the police part but there is nothing mysterious about it and I’m confident that in the course of time, police will speak to the issue.*"
They won't release anything in "due course". They will wait until noone is paying attention to speak up. This is the go to strategy of every administration and it is starting to backfire. Start promoting competence in senior ranks so that any worker can speak competently about active issues, the public has confidence in what is being said and workers can answer reporters' probing questions with sense.
Posted 29 November 2022, 3:11 a.m. Suggest removal
John says...
Most of the address sounded like political rhetoric. The AG sounded like he was at a political rally beginning for support rather than like he was delivering facts.
Posted 29 November 2022, 5 a.m. Suggest removal
Sickened says...
Yup. He looked like this was his first public speaking engagement. A telling sign.
Posted 29 November 2022, 9 a.m. Suggest removal
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