FTX’s Burst Bubble Is Very Bad News For The Ruling Progressive Liberal Party - PLP in The Bahamas

Actually, FTX is already becoming the daily topic of discussion of national focus in The Bahamas – and we have at least three solid years to go before the next general election.  It looks like a rough ride ahead on the FTX wave with ‘Brave’ – in my humble estimation. Like the song goes: Oh Sam – oh Sam, by damn – by damn. 

By Dennis Dames
Nassau, NP, The Bahamas

The full financial, social and political impact of FTX’s collapse is far from being known – in my view.  One thing is certain, and that is a multitude of ordinary hardworking folks throughout the world have lost their whole life savings – or a significant portion of it as a result of FTX’s burst bubble.

It’s the worst case of betrayal of public trust that I have seen in my lifetime.  Many of the clients concerned – are expressing their frank and honest emotions in social media circuits as the FTX saga plays out in bankruptcy court; and their sentiments are far from nice and pleasant. 

All of this is happening while the former loose cannon CEO of FTX continues to add fuel to the fire in the press and on social media platforms.  He simply cannot keep his friggin trap shut!

There are already reported cases of suicides and assassinations relating to the demise of FTX in countries around the world, and the situation is looking grimmer by the minute.  The complete fallout from FTX’s failure is unknown, but one thing if for sure, and that is many politicians – especially in the USA have a lot of questions to answer for the general voting public in regards to FTX failed crypto exchange.  

It will have a great influence on the next Presidential election in the United States and the next round of midterm congressional elections – in my opinion.  Trump is going to have the time of his life – I can imagine.  Wow wow we waa!

Politicians in The Bahamas will also have a lot of voters questions to answer, and FTX could be the main subject of concern moving in to the next general election season in The Bahamas.  This is totally bad and unwanted news for the ‘New day’ administration – no doubt.

Actually, FTX is already becoming the daily topic of discussion of national focus in The Bahamas – and we have at least three solid years to go before the next general election.  It looks like a rough ride ahead on the FTX wave with ‘Brave’ – in my humble estimation. Like the song goes: Oh Sam – oh Sam, by damn – by damn.  

FTX will adversely affect a good number of governments in our universe – as more and more horrific details of its internal operations are publicly revealed. It’s a budding international scandal of monumental proportions.  Let’s face it, as it’s not going anywhere soon.

The Securities Commission of The Bahamas Takes Control of The Assets of FTX Digital Markets Ltd

Securities Commission of The Bahamas Assumes Control of Assets of FTX Digital Markets Ltd.

Securities Commission of The Bahamas Poinciana House

North Building, 2" Floor

31A East Bay Street

P.O. Box N-8347

Nassau, The Bahamas

MEDIA RELEASE

Executive Director FOR IMMEDIATE RELEASE

Christina Rolle

242-397-4100

Nassau, The Bahamas, Thursday 17 November 2022 - On 12 November 2022, the Securities Commission of The Bahamas (“the Commission”), in the exercise of its powers as regulator acting under the authority of an Order made by the Supreme Court of The Bahamas, took the action of directing the transfer of all digital assets of FTX Digital Markets Ltd. (“FDM”) to a digital wallet controlled by the Commission, for safekeeping.  Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM.

Under the Digital Assets and Registered Exchanges Act, 2020 (“DARE Act”), the Commission has the authority to apply for a judicial order to protect the interests of clients or customers of a registrant of the Commission under the DARE Act.

It is not the understanding of the Commission that FDM is a party to the US Chapter 11 Bankruptcy proceedings.

Over the coming days and weeks, the Commission will engage with other regulators and authorities, in multiple jurisdictions, to address matters affecting the creditors, clients and stakeholders of FDM globally to obtain the best possible outcome.

All About The Securities Commission of The Bahamas

1. The Securities Commission of The Bahamas (the Commission) is a statutory body established in 1995 pursuant to the Securities Board Act, 1995. That Act has since been repealed and replaced by new legislation.

2. The Commission’s mandate is defined in the Securities Industry Act, 2011 (SIA, 2011).

3. The Commission is responsible for the administration of the SIA, 2011 and the Investment Funds Act, 2019 (IFA), which provides for the supervision and regulation of the activities of the investment funds, securities and capital markets.

4. The Commission is responsible for the administration of the Financial and Corporate Service Providers Act, 2020.

5. The Commission is responsible for the administration of the Digital Assets and Registered Exchanges Act, 2020.

6. The Commission is responsible for the administration of the Carbon Credit Trading Act, 2022.

7. The functions of the Commission are to: advise the Minister on all matters relating to the capital markets and its participants; maintain surveillance over the capital markets and ensure orderly, fair and equitable dealings in securities; foster timely, accurate, fair and efficient disclosure of information to the investing public and the capital markets; protect the integrity of the capital markets against any abuses arising from financial crime, market misconduct and other unfair and improper practices; promote an understanding by the public of the capital markets and its participants and the benefits, risks, and liabilities associated with investing; create and promote conditions that facilitate the orderly development of the capital markets; and perform any other function conferred or imposed on it by securities laws or Parliament (SIA, 2011, s.12).

Source

The Royal Bahamas Police Force (RBPF) Financial Crimes Investigation Branch Investigates FTX Digital Markets Ltd

Chrislyn Skippings

Public Affairs & Communications Department (PACD)

P.O. Box N-458

Police Headquarters

Nassau, The Bahamas

Email: rbpfpaco@ gmail.com

chrislynskippings@ gmail.com

RBPF NEWS RELEASE 6202

 STATEMENT REGARDING FTX

In light of the collapse of FTX globally and the provisional liquidation of FTX Digital Markets Ltd., a team of financial investigators from the Financial Crimes Investigation Branch are working closely with the Bahamas Securities Commission to investigate if any criminal misconduct occurred.

       

Chrislyn Skippings — RBPF, PACO 13 November, 2022

The Securities Commission of The Bahamas on FTX Withdrawals

Securities Commission of The Bahamas Poinciana House

North Building, 2" Floor

31A East Bay Street

P.O. Box N-8347

Nassau, The Bahamas

MEDIA RELEASE

Executive Director 

Christina Rolle - 242-397-4100

Securities Commission Addresses FTX Statement on Bahamian Withdrawals

The Commission wishes to advise that it has not directed, authorized or suggested to FTX Digital Markets Ltd. the prioritization of withdrawals for Bahamian clients.

Nassau, The Bahamas, Saturday 12 November 2022 — The Securities Commission of The Bahamas (the Commission) notes the statement made by representatives of FTX which advised “Per Bahamian HQ’s regulation and regulators, we have begun to facilitate the withdrawals of Bahamian funds.  As such, you may have seen some withdrawals processed by FTX recently as we complied with the regulators”.

The Commission wishes to advise that it has not directed, authorized or suggested to FTX Digital Markets Ltd. the prioritization of withdrawals for Bahamian clients. 

The Commission further notes that such transactions may be characterized as voidable preferences under the insolvency regime and consequently result in clawing back funds from Bahamian customers.  

In any event, the Commission does not condone the preferential treatment of any investor or client of FTX Digital Markets Ltd. or otherwise.

About The Securities Commission of The Bahamas

1. The Securities Commission of The Bahamas (the Commission) is a statutory body established in 1995 pursuant to the Securities Board Act, 1995.  That Act has since been repealed and replaced by new legislation.

2. The Commission’s mandate is defined in the Securities Industry Act, 2011 (SIA, 2011).

3. The Commission is responsible for the administration of the SIA, 2011 and the Investment Funds Act, 2019 (IFA), which provides for the supervision and regulation of the activities of the investment funds, securities and capital markets.

4, The Commission is responsible for the administration of the Financial and Corporate Service Providers Act, 2020.

5. The Commission is responsible for the administration of the Digital Assets and Registered Exchanges Act, 2020.

6. The Commission is responsible for the administration of the Carbon Credit Trading Act, 2022.

7. The functions of the Commission are to: advise the Minister on all matters relating to the capital markets and its participants; maintain surveillance over the capital markets and ensure orderly, fair and equitable dealings in securities; foster timely, accurate, fair and efficient disclosure of information to the investing public and the capital markets; protect the integrity of the capital markets against any abuses arising from financial crime, market misconduct and other unfair and improper practices; promote an understanding by the public of the capital markets and its participants and the benefits, risks, and liabilities associated with investing; create and promote conditions that facilitate the orderly development of the capital markets; and perform any other function conferred or imposed on it by securities laws or Parliament (SIA, 2011,s.12).

Source

FTX Assets in The Bahamas Officially Frozen - The Company is Now in Liquidation

Thursday November 10, 2022 - Nassau, The Bahamas:  The Securities Commission of The Bahamas freezes FTX assets; company put into liquidation

“Today, the Securities Commission of The Bahamas (the Commission) took action to freeze assets of FTX Digital Markets and related parties. The Commission also suspended the registration and applied to the Supreme Court of The Bahamas for the appointment of a provisional liquidator of FTX Digital Markets Ltd. (FDM),” said a statement released by SCB Executive Director Christina Rolle this evening.

“The Commission is aware of public statements suggesting that clients’ assets were mishandled, mismanaged and/or transferred to Alameda Research. Based on the Commission’s information, any such actions would have been contrary to normal governance, without client consent and potentially unlawful.

Since the unfolding of events involving FDM, the Commission has proactively dealt with the situation and continues to do so.

“The Commission determined that the prudent course of action was to put FDM into provisional liquidation to preserve assets and stabilize the company.”