Bahamian authorities confirm that FTX is underSource: Adobe Stock / Ruth P. Peterkin

As FTX's bankruptcy proceedings continue to wreak havoc on crypto markets, authorities in the Bahamas, where the exchange is based, are investigating the bankrupt company's activities, according to Ryan Pinder, the country's Attorney General and Minister of Legal Matters.

In what he called a national statement on behalf of the Bahamas government, the politician said the Bahamas Securities Commission, Financial Intelligence Unit and Police Financial Crimes Unit are advancing their investigation into "the facts and circumstances related to the FTX insolvency crisis. and any possible violation of Bahamian law."

“Tonight, as I speak on behalf of the government, it is actually the Bahamas Securities and Exchange Commission that is the main player with respect to the current situation because it is the legal regulator of companies like FTX,” according to Pinder. .

Much of the official's speech was devoted to defending national cryptocurrency-related regulations, noting that following the collapse of the main exchange, the company did not plan to introduce any significant changes to its regulatory framework. The Attorney General stressed that, from his point of view, the company's management was to blame for the resulting crisis.

“While cryptocurrencies and digital assets are part of a new and complex industry, at the grassroots level, recent events related to the insolvency crisis involving the FTX group of companies have been experienced around the world,” Pinder said. . "To that extent, what happened can more easily be understood as a case of bankruptcy of a very large company and the result of very questionable corporate governance and management practices."

The minister also said that he believes the ongoing downturn in the crypto market will eventually come to an end, putting the industry back on a growth path.

“Like the dot-com boom and bust of the past, we believe the turmoil the digital asset industry is currently experiencing will pass and there is still a lot of potential and opportunity ahead,” according to Pinder.

Meanwhile, FTX's legal troubles continue in the US as well, as recent information suggests that Sam Bankman-Fried's company was on the radar of federal prosecutors long before it filed for bankruptcy.

The United States Attorney's Office for the Southern District of New York, led by United States Attorney Damian Williams, has spent several months examining cryptocurrency exchanges that maintain operations in the United States and abroad. As part of those proceedings, Manhattan prosecutors had begun investigating FTX's massive exchange operations, according to people familiar with the matter.

Available information suggests that US prosecutors are particularly interested in investigating FTX's compliance with the country's bank secrecy law. The legislation introduces anti-money laundering measures in the United States by requiring financial industry participants to maintain records and submit reports for tax, criminal, and regulatory purposes.

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