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Companies | Washington
The Day by day Tribune – www.newsofbahrain.com
Collapsed cryptocurrency trade FTX stays the topic of “an energetic and ongoing investigation” by Bahamian authorities, Bahamian Legal professional Basic Ryan Pinder stated on Sunday, as he praised the Bahamas’ regulatory regime, and the swiftness with which it responded to the disaster.
FTX — which had been among the many world’s largest cryptocurrency exchanges — is headquartered within the Bahamas.
The agency, whose liquidity crunch pressured the corporate to declare chapter on November 11, is the topic of investigations by Bahamian and US authorities.
In mid-November, the Royal Bahamas Police stated that authorities investigators within the Bahamas have been taking a look at whether or not any “legal misconduct occurred”.
“We’re within the early phases of an energetic and ongoing investigation,” Pinder stated on Sunday, in keeping with ready remarks for the speech.
“It’s a very advanced investigation” that includes each civil and legal authorities, he stated.
Pinder stated that the Bahamas Securities Fee, Monetary Intelligence Unit and the police’s Monetary Crimes Unit would “proceed to research the information and circumstances relating to FTX’s insolvency disaster, and any potential violations of Bahamian regulation”.
Pinder additionally defended the Bahamas’ regulatory regime and stated that its Securities Fee had moved shortly “due to the power of the legislative framework”.
Bahamas securities regulators had revoked FTX Digital’s license and commenced involuntary liquidation proceedings the day earlier than the US chapter case kicked off.
“Any try to put the whole thing of this debacle on the ft of the Bahamas, as a result of FTX is headquartered right here, can be a gross oversimplification of actuality,” Pinder stated, including that the Bahamas Securities Fee had moved with “outstanding” pace in response.
Sam Bankman-Fried, 30, based FTX in 2019 and rode the cryptocurrency increase to a internet price — that Forbes pegged a yr in the past — at $26.5 billion.
Bankman-Fried resigned as FTX’s chief govt officer the identical day because the agency’s chapter submitting.
The liquidity crunch got here after Bankman-Fried secretly moved $10 billion of FTX buyer funds to his proprietary buying and selling agency, Alameda Analysis, Reuters reported, citing two individuals accustomed to the matter.
In mid-November, the US Legal professional’s Workplace in Manhattan — led by veteran securities fraud prosecutor Damian Williams — started investigating how FTX dealt with buyer funds, a supply with data of the probe instructed Reuters.
The Securities and Change Fee and Commodity Futures Buying and selling Fee additionally opened probes.
FTX’s demise comes after a string of meltdowns which have taken down different key gamers, together with Voyager Digital and Celsius Community, and led some world traders to query the viability of the cryptocurrency sector.
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