Criminal Investigation into FTX is underway: Bahamas Attorney General

Bahamas attorney General Ryan Pinder
  • Bahaman authorities start a criminal investigation into FTX’s activities.
  • FTX’s Attorney General and Minister of Legal Affairs, Ryan Pinder, extended warnings to other firms involved in unlawful dealings by FTX.
  • Further, the Attorney General stated that the country is willing to work with international law enforcement. 
  • Following the FTX suspension by Bahaman authorities, the cryptocurrency exchange ceased operations in the country. 
  • The SCB requested FTX users in the Bahamas transfer their assets to their wallets.

More trouble looms for collapsed cryptocurrency exchange FTX, as the Bahaman authorities start a criminal investigation into the firm’s activities. 

The Bahamas Attorney General and Minister of Legal Affairs, Ryan Pinder, made the revelation yesterday through the official YouTube channel of the Prime Minister of Bahamas.

“We are in the early stages of an active and ongoing investigation — it’s a very complex investigation — BSC, the Financial Intelligence Unit, and the Police Financial Crimes Unit will continue to investigate the facts and circumstances surrounding FTX’s bankruptcy crisis and possible violations of Bahamian law,” Pinder stated.

In his words, Pinder extended warnings to other firms within and outside the virtual assets sector, stating authorities of the Bahamas would bring to book any companies or individuals involved in any unlawful dealings by FTX. Additionally, the Attorney General said the country is willing to work with international law enforcement agencies during the investigation. 

However, the Attorney General admitted that the controversies surrounding the collapse of FTX should convince authorities to embrace cross-border financial regulation.

The Attorney General supported the Bahaman Government’s decision to give access to the debtor system of FTX after the cryptocurrency exchange filed for bankruptcy in the U.S., a decision FTX had criticized through an emergency motion a few weeks ago. In the motion, the cryptocurrency exchange faulted the government of the Bahamas.

The recent commencement of the investigation will further pile pressure on FTX and its boss, Sam Bankman-Fried. Recall that on November 10, 2022, the Securities Commission of the Bahamas (SCB) suspended FTX’s Digital Markets (FDM) License.

The suspension compelled the cryptocurrency exchange to stop business operations in the country. Further, the SCB requested that every user’s assets on FTX in the Bahamas be transferred to a wallet owned by the commission.

With the move, the SCB intended to keep users’ assets safe against future occurrences that could rob them of their funds on centralized exchanges.

On the Flipside

  • Interestingly, Bahaman authorities made the recent announcement after prominent crypto influencers such as Ben Armstrong, Bitboy, and Gabriel Haines visited the Bahamas to interrogate the former FTX CEO, a move that gained the community’s attention.

Why You Should Care

It is worth noting that the steps above were taken by the Bahaman authorities to protect users against the prevailing FTX chaos. The commencement of a fresh investigation into the firm’s activities in the country will give hope of retrieving users’ funds.

In that regard, Pinder illuminated that regulators in the country have the backing of the Supreme Court of the Bahamas to take more measures to protect investors. 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Soumen Datta

Soumen has been a dedicated researcher and writer in the field of cryptocurrencies for the last few years. Even though Indian crypto regulations are still unclear, he believes that India will continue to innovate in the years to come. He loves to play his guitar and sing along in his spare time. He holds bags mostly in BTC, ETH, BNB, MATIC, ADA.