Bahamian Opposition Leader, Michael Pintard is calling for the establishment of a select committee of Parliament to deal with matters relating to the collapse of the failed crypto-exchange, FTX.
Last December, the chief executive officer of the of the collapsed cryptocurrency exchange, Sam Bankman-Fried, was extradited to the United States after he was arrested in The Bahamas.
A grand jury indictment charged Bankman-Fried with wire fraud and conspiracy to commit wire fraud against lenders and customers, conspiracy to commit securities fraud, conspiracy to commit money laundering, and violations of campaign finance laws.
Bankman-Fried, 30, who could spend the rest of his life in jail, also faces separate charges from the Securities and Exchange Commission. The SEC complaint alleges that Bankman-Fried diverted customer funds without customers’ knowledge from FTX to Alameda Research, his private crypto fund, and used that money for “fraudulent” purposes, including real estate purchases and political donations. He has pleaded not guilty to the charges.
In a statement, Pintard noted that with the establishment of the select committee on matters relating to FTX, there should be an inquiry to look at the country’s legislation, policies, interaction with the company, government officials’ interactions with the company and its officials in an official or unofficial capacity.
“We do not expect to cut across the judicial insolvency related to investigations ongoing in which the joint provisional liquidators who are court appointed will report to the court. We support this process taking its course,” he said.
Pintard listed 11 terms with regard to what this particular committee should consist of, noting that the call for the establishment of the select committee on FTX is to ensure transparency due public oversight in this matter, which is one of international concern.
“The terms of reference of the select committee will consist of the following: to what extent if any has the government invested any Bahamian resources into FTX at any level in any jurisdiction,” Pintard said.
“The nature and extent of the government’s due diligence. The findings of the due diligence. The impact of the collapse in our jurisdiction in general, on the employees of FTX, service providers and local business partners, in particular. What is the nature of the relationships between all PEPs (politically exposed persons) relative to FTX and its officials? Did PEPs receive loans from FTX on any of its subsidiaries? Did any PEP receive payments or donations from FTX or any of its subsidiaries?
“The financial exposure to the government if any, and any implications for the national budget. Impact on the reputation of our jurisdiction and ongoing investment in our financial services sector, including the digital assets space? The inquiry should review the legislative DARE Act, the due diligence requirements, and the monitoring of companies registered under the DARE Act.”
Pintard said the committee will also review the ability and resources of the Security Commission to ascertain if they are adequate to monitor crypto companies and exchanges.
CMC/
