Bahamas Attorney General Dismisses New FTX CEO’s ‘Reckless’ Remarks

28 November 2022, 06:11 GMT+0000
Updated by Kyle Baird
28 November 2022, 06:11 GMT+0000
In Brief
  • Bahamas Attorney General addressed the nation on the FTX incident, laying the blame on FTX’s internal failures.
  • The AG dismissed new FTX CEO John Ray’s claims that it tried to gain unauthorized access to the FTX system.
  • Stunning reveals continue to take place with respect to the incident, with Alameda Research reportedly withdrawing over $200 million from FTX.US before the bankruptcy filing.
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The Bahamas’ Attorney General has criticized FTX CEO John Ray’s remarks on the regulator’s actions. He also said that the exchange collapsed because of internal business failures.

The Attorney General of the Bahamas addressed the country on the FTX incident in a speech criticized by the crypto community.

Ryan Pinder said during the speech that the Bahamas was a “place of law” and that Alameda lacked regulation in the country. However, the crypto community believes the speech was too praiseworthy of the Bahamas and did little to address concerns surrounding FTX.

Pinder called the case an “internal business failure in part due to questionable internal practices” and effectively said that authorities acted quickly. The crypto community remarked it was an attempt to make the country seem good for business despite the incident.

The speech did not cover the misappropriation of user funds, and as a whole, the crypto community called it an advertisement for the Bahamas. Pinder also said that new FTX CEO John Ray spoke recklessly. He referred to Ray’s statement on the regulator’s request for unauthorized access to FTX.

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The Securities Commission of The Bahamas (SCB) had previously dismissed Ray’s claims that it had tried to gain that unauthorized access. The SCB also painted a picture of it has responded to the incident adequately.

Bahamian authorities lay blame on FTX

Pinder squarely blamed the FTX incident on its internal failures. Pinder was also adamant that the exchange was subject to regulatory scrutiny, saying,

“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 the crypto and digital asset business, but The Bahamas is not one of these countries.”

The address referred to FTX founder Sam Bankman-Fried only once in its 20-minute run-time. Perhaps most interestingly, Pinder worked for a bank associated with Tether called Deltec.

Drama continues as more developments take place

The developments coming out of the FTX saga have been virtually endless in the past week, with several dramatic reveals made. Blockchain analytical firm Arkham Intelligence revealed that Alameda Research withdrew over $200 million from FTX.US before the bankruptcy filing.

There have also been reports that FTX secured an $11.5 million stake in a small U.S. bank to bypass the license acquisition process. Meanwhile, streaming giants are fighting for the rights to the FTX saga.

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.