The Bahamas has hit out at ‘extremely regrettable’ criticism from FTX’s new CEO after the Nassau-based crypto giant collapsed

The collapse of Bahamas-based FTX has actually triggered the island-nation to safeguard its crypto laws and slam the FTX’s brand-new CEO, John J. Ray III.

After the crypto exchange established by Sam Bankman-Fried got in insolvency previously in November, the Bahamas suspended FTX’s license and took control of its digital possessions by moving them into a federal government crypto wallet.

In a video declaration on Sunday, the Bahamas attorney general of the United States, Ryan Pinder, took objective at Ray over insolvency court filings associating with the nation’s actions versus FTX.

Pinder stated it was “very regrettable” that Ray had “misrepresented the prompt action” of Bahamian regulators, and implicated him of submitting “unreliable claims.”

He included that the Bahamas securities commission “is worthy of the greatest appreciation for moving so promptly and decisively” in its liquidation procedures versus FTX.

Ray is likewise understood for functioning as CEO for energy huge Enron, and managed its liquidation after accounting scams. On taking control of FTX, he stated: “Never ever in my profession have I seen such a total failure of business controls and such a total lack of reliable monetary details as taken place here.”

Pinder countered at allegations that the Bahamas was stopping working to correctly control cryptocurrency amidst the FTX fallout. He stated: “The world has lots of nations in which there is no legal or regulative authority over the crypto and digital property company, however I should state the Bahamas is not one of these nations.”

The Caribbean country has actually developed itself as a crypto center in spite of having a population of simply 400,000. Bankman-Fried formerly informed Blockworks that FTX moved there since of “the proactive position taken by The Bahamas and its regulative bodies on cryptocurrencies.”

The Bahamas is likewise house to Deltec Bank, which in 2021 was reported by Bloomberg to hold $15 billion in reserves for Tether, a stablecoin pegged to the United States dollar.

Pinder likewise recommended that FTX’s legal technique and “intemperate declarations” might be being driven by “the possibility of multimillion dollar legal and expert charges.”

” In any case, we prompt vigilance and precision in all future filings,” he included.

FTX’s insolvency has actually caused require tighter crypto policies from both United States senators and the Bank of England.

One FTX legal representative formerly stated the business had actually invested practically $300 million on high-end homes for senior executives in the Bahamas, while Fox Service reported that Bankman-Fried typically purchased $2,500 lunches at one restaurant.