FTX founder Sam Bankman-Fried.
FTX Official/YouTube
The prime minister of the Bahamas reportedly says the country could not have prevented the collapse of FTX.
“[We] have not identified any deficiencies in our regulatory framework that could have avoided this.”
FTX is seeking bankruptcy protection in the US, filing last week after failing to secure a rescue from rivals.
The prime minister of the Bahamas, the country where FTX is headquartered, said the country could not have prevented the collapse of the crypto exchange.
“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,” Prime Minister Philip Davis told parliament in prepared remarks Wednesday, the Financial Times reported.
FTX, once the world’s third-largest crypto exchange, is seeking bankruptcy protection in the US after its founder and now ex-CEO Sam Bankman-Fried last week failed to secure a bailout deal. The company, once valued at $32 billion, veered toward bankruptcy after it was unable to plug a shortfall of $8 billion.
Davis told the Bahamian parliament that government investigations into FTX would be of “national importance” and that the Bahamas did not have sole oversight of the company’s worldwide operation, according to the FT report.
FTX’s failure was an example of the broader issues facing tech companies such as Meta and Amazon this year, Davis said, The Wall Street Journal reported.
Separately, the WSJ reported Wednesday that securities regulators in the Bahamas were seeking to control FTX bankruptcy proceedings through the crypto exchange’s locally based subsidiary FTX Digital Markets Ltd., mounting a challenging to the company’s Chapter 11 filing in Delaware.