NASSAU, Bahamas, CMC – Opposition Leader Michael Pintard is calling for 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 collapsed cryptocurrency exchange, Sam Bankman-Fried, was extradited to the United States after he was arrested here.
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 about 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 to public oversight in this matter, which is one of the international concerns.
“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 accept payments or donations from FTX or its subsidiaries?
“The financial exposure to the government, if any, and 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 would also review the ability and resources of the Security Commission to see if they are adequate to monitor crypto companies and exchanges.
“Without a proper inquiry, the country will be left to endure a credibility problem and may be cast in a light of not sufficiently mature to be regarded by the international financial community as a responsible jurisdiction for this kind of economic activity, “he added.
Pintard, who is also the leader of the Free National Movement (FNM), has also called for the establishment of a select committee to investigate and consider all matters about the immigration situation in the Bahamas.
He is suggesting five terms for the select committee for the immigration crisis: border security by air and sea; Bahamian citizenship, inclusive of addressing issues such as naturalization for those that have long been waiting as well as conducting an audit of the granting of permanent residence and citizenship, modification of the nationality act.
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