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Bahamas Attorney General Rejects Remarks Made By New FTX CEO

  • The Bahamas Attorney General addressed the nation on the FTX disaster, blaming internal FTX shortcomings.

  • The AG rejected new FTX CEO John Ray's assertions that the company attempted to acquire unauthorized access to the FTX system.


28-Nov-2022 By: Ashish Sarswat
Bahamas Attorney Gen

The Bahamas' Attorney General has slammed FTX CEO John Ray's comments on the regulator's actions. He also stated that the exchange failed due to internal business failures.

The Bahamas Attorney General addressed the country on the FTX issue in a speech that was heavily criticized by the crypto community.

During his speech, Ryan Pinder stated that the Bahamas was a "land of law" and that Alameda lacked regulation in the country. The crypto community, on the other hand, felt the speech was excessively complimentary to the Bahamas and did nothing to address worries about FTX.

Pinder portrayed the matter as an "internal business failure caused in part by questionable internal processes," and claimed that authorities acted quickly. The crypto community speculated that it was an attempt to make the government appear business-friendly despite the tragedy.

The speech did not address the misappropriation of user funds, and the crypto community dubbed it an advertisement for the Bahamas as a whole. Pinder also said that FTX's new CEO, John Ray, spoke carelessly. He cited Ray's comments regarding the regulator's request for unauthorized access to FTX.

The Securities Commission of The Bahamas (SCB) previously denied Ray's claims that it attempted to gain unauthorized access. The SCB also presented a picture of itself as having effectively responded to the situation.

Bahamas Authorities blame FTX

Pinder blamed the FTX incident solely on internal flaws. Pinder was likewise certain that the deal would be scrutinized by regulators, adding:

“We have been astounded by individuals who claim that FTX chose the Bahamas because they did not want to be subjected to regulatory scrutiny. In fact, there are several nations throughout the world where there is no legislative or regulatory authority over the crypto and digital asset market, but The Bahamas is not one of them.”

The address barely mentioned FTX founder Sam Bankman-Fried once during its 20-minute runtime. Perhaps most interestingly, Pinder worked for Deltec, a Tether-affiliated bank.

Dramatic Events Continue as More Developments Emerge

The FTX situation has seen nearly limitless developments in the last week, with multiple stunning disclosures. Arkham Intelligence, a blockchain analytics firm, disclosed that Alameda Research withdrew more than $200 million from FTX.US prior to the bankruptcy filing.

As per reports, FTX acquired an $11.5 million stake in a minor US bank in order to avoid the license acquisition process. Meanwhile, the rights to the FTX saga are being fought over by streaming behemoths.

Read also: Belgian Financial Regulator Declares Bitcoin and Ether as No Securities

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