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Bahamas could not have prevented FTX collapse

  • On Wednesday, the Bahamas’s prime minister Philip Davis told parliament the country could not have prevented the failure of digital asset exchange FTX and has found no “deficiencies” in its crypto regulations.
  • While FTX was regulated by the Securities Commission of the Bahamas, Philip Davis said his country did not have sole oversight of FTX’s worldwide operation and investigations into the collapse of Sam Bankman-Fried’s crypto empire would be of “national importance”.

The collapse of FTX last week has left its clients facing potentially huge losses while eroding market confidence and triggering “domino effect” for other crypto leading companies.

On Wednesday, the Bahamas’s prime minister Philip Davis told parliament the country could not have prevented the failure of digital asset exchange FTX and has found no “deficiencies” in its crypto regulations.

“Based on the analysis and understanding of the FTX liquidity crisis to date, we have not identified any deficiencies in our regulatory framework that could have avoided this,” Davis said in prepared remarks.

While FTX was regulated by the Securities Commission of the Bahamas, Philip Davis said his country did not have sole oversight of FTX’s worldwide operation and investigations into the collapse of Sam Bankman-Fried’s crypto empire would be of “national importance”.

As FTX and more than 100 affiliated companies filed for Chapter 11 bankruptcy in Delaware on Friday, it said in court filings that it was in contact with US federal prosecutors, the country’s main securities and derivatives regulators and “dozens of federal, state and international regulatory agencies”.

Davis said that FTX-related probes “are to be of the highest order and given precedence, given the amounts involved and because committed and rigorous oversight is of national importance. We will be co-ordinating these efforts with duly appointed authorities in other jurisdictions.”

He added that he had every confidence that “the Bahamas will emerge from the proceedings involving FTX . . . with an enhanced reputation as a solid digital asset jurisdiction”.

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SuperCryptoNews is a global leading blockchain and crypto news provider, covering daily news on the latest tech and trading developments in crypto. We bring you expansive crypto news coverage especially in Asia, with a focus on Singapore, Thailand and Southeast Asia.

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