The Tribune

By JADE RUSSELL.

jrussell@tribunemedia.net

FOREIGN Affairs Minister Fred Mitchell questioned how “attacking” The Bahamas helps resolve the FTX saga and dismissed claims of the country’s jurisdiction being nontransparent.

Mr Mitchell’s comments came yesterday in response to FTX’s new CEO John Ray III, who criticised the process in The Bahamas as not transparent. Mr Ray made this revelation last week during the US House Committee on Financial Services hearing into FTX’s collapse.

“The evidence will show that there is nothing in this jurisdiction that supports the idea of something intrinsically evil or worthy of mistrust in The Bahamas. Such an assertion is not only offensive, it is wrong,” Mr Mitchell said in a voice note which was circulated yesterday.

“Watching the proceedings on television of the congressional hearings in The United States, I was forced to ask myself the question: Do these legislators understand that they who sit at the apex of the power in the world, have the power with their words to destroy other countries?”

Mr Mitchell said US legislators should speak carefully and act judiciously considering their power.

He also dismissed speculation about The Bahamas’ relationship with the United States government in regard to the FTX collapse, as he said, “we cooperate as we always do on matters at the state-to-state level.”

He continued: “But as the other individuals within that country who are making often injudicious unseemly statements, which profit no one. How does attacking The Bahamas and Bahamians solve the issue at hand with regard to FTX from what is floated in the public domain?

“There is, for example, Bahamian land that may be put out or called to be put into the recovery process. How is that land to be recovered by US authorities when their own private international law rules say that the lack of situs or the law where the land is, determines the disposition of the land?”

He was referring to millions of dollars in real estate purchased by FTX and its employees which is now at the centre of legal wrangling both here and in the US.

He also said: “When you cast aspersions, you are attacking an ally, not a foe. But we will, of course, defend our reputation if we must, but why should reputation even come into question in this matter?”

He called FTX a “business failure” and argued the “finger pointing” of the matter should stop.

“Stop the finger pointing, cooperate and let’s charge those who are guilty. Convict them, they must be punished and let’s also try to get justice for the victims,” Mr Mitchell said.

The collapse of the crypto giant has grabbed local and international headlines, with some scrutiny and criticism being levelled at The Bahamas government and its digital regulatory framework.

Last Friday, Prime Minister Phillip “Brave” Davis insisted that the collapse of FTX has nothing to do with The Bahamas, saying “you don’t blame the jurisdiction, you blame the bad actors”.