an “active” investigation by the Bahamian authorities

Source: AdobeStock / Ruth P. Peterkin

While the impacts of bankruptcy of FTX continue to wreak havoc on crypto markets, authorities in the Bahamas, where the exchange is headquartered, are investigating the company’s activities, according to Ryan Pinderattorney general and minister of legal affairs of the nation.

In national declaration on behalf of the Government of the Bahamas, the Minister announced that the Bahamas Securities CommissionI’Financial Intelligence Unit and theFinancial Crimes Unit of the police are advancing their investigation into “the facts and circumstances regarding FTX’s insolvency, and any potential violations of Bahamian law.”

“Tonight, as I speak on behalf of the government, it is actually the Bahamas Securities Commission that is the primary stakeholder in the current case, as the statutory regulator of companies like FTX,” according to Pinder. .

Much of the official’s speech was dedicated to defending national cryptocurrency regulations. Mr Pinder reported that following the collapse of FTX, the firm did not plan to introduce any significant changes to its regulatory framework. The Attorney General stressed that, from his point of view, the management of the company was to blame for the resulting crisis.

“While cryptocurrencies and digital assets are part of a new and complex industry, at a fundamental level, recent events involving the FTX Group of Companies’ insolvency crisis have had repercussions around the world,” said Pinder. “To that extent, what happened can most easily be understood as a malfunction on a grand scale and the result of highly questionable management and corporate governance practices.”

The minister also believed that the current downturn in the crypto market will eventually come to an end, putting the industry back on a growth path.

“Like the dot com boom and bust of the past, the turmoil the digital asset industry is currently experiencing will subside, and there is still a lot of potential and opportunity ahead,” according to Pinder.

During this time, the legal setbacks of FTX are also continuing in the United States, as the latest available information suggests that the company of Sam Bankman-Fried was in the crosshairs of federal prosecutors long before he filed for bankruptcy.

The United States Attorney’s Office for the Southern District of New York, headed by the Attorney Damian Williams, spent several months reviewing crypto exchanges that have operations based in the United States and overseas. As part of those proceedings, Manhattan prosecutors had begun investigating FTX’s mining operations, according to people familiar with the matter.

US prosecutors are said to be particularly interested in FTX’s compliance with the country’s bank secrecy law. This law establishes anti-money laundering measures in the United States by requiring financial industry participants to maintain records and submit reports for tax, criminal, and regulatory purposes.