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AG Pinder Makes a National Statement Regarding FTX Digital Markets Limited

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By LLONELLA GILBERT
Bahamas Information Services

 

#TheBahamas, December 1, 2022 – Attorney General and Minister of Legal Affairs Senator the Hon. Ryan Pinder made a National Statement on behalf of The Government of The Commonwealth of The Bahamas, on the current situation regarding FTX Digital Markets Limited.

The AG explained that The Bahamas is a place of laws and the rule of law, and the exercise of due process, characterizes the integrity of its jurisdiction. “As the third-oldest democracy in the western hemisphere, our legal, regulatory and financial sectors have stood the test of time.”

He said given how quickly things have moved, it is hard to believe that it was only on November 2, that an article first appeared on the news site CoinDesk, with the details of a leaked financial statement of Alameda Research, a trading company also founded by Sam Bankman-Fried founder and CEO of FTX US Derivatives.

“I want to pause here to emphasize that among the over 100 companies located in dozens of jurisdictions around the world, FTX Digital Markets is the only entity regulated in The Bahamas,” AG Pinder said.

“Alameda Research is NOT regulated in The Bahamas. To the extent Alameda Research is found to have committed any improprieties in The Bahamas, then of course it will be subject to our jurisdiction.”

He said the balance sheet of Alameda Research, CoinDesk reported at that time, revealed that a large portion of their assets were held in FTT, a token issued by an FTX entity, that granted token holders a discount on trading fees.

The AG said four days later, on November 6, Binance, a crypto exchange that is a major rival to FTX, announced that it was selling off all its substantial holdings in the FTT token.

He said this announcement prompted many FTX investors to withdraw hundreds of millions of dollars in digital assets from FTX – causing a liquidity crunch.

“In short, FTX was experiencing the equivalent of a ‘run on the bank,’ when customers all rush to withdraw assets simultaneously. Two days later, on November 8, it was reported that Binance had entered into a non-binding agreement to buy FTX. However, the very next day, November 9, Binance pulled out of the deal.”

Attorney General Pinder noted that one day later, November 10, the Securities Commission of The Bahamas, announced that it had taken action to freeze the assets of FTX Digital Markets, had suspended the registration of FTX Digital Markets as a licensee under The Digital Assets and Registered Exchanges Act, also known as the “DARE Act”, and applied to the Supreme Court of The Bahamas, pursuant to its regulatory authority under the DARE Act, to place the company into provisional liquidation.

“The speed with which the Securities Commission was able to move was remarkable by any standard. Over the course of eight days, market confidence was lost in a company which at one point had a $32 billion valuation.”

He said, “The Securities Commission deserves the highest praise for moving so swiftly and decisively to suspend FTX Digital Markets’ license and appoint provisional liquidators.

“In addition, the Securities Commission recognized that given the nature of digital assets, and the risks associated with hacking and compromise, placing FTX Digital Markets into provisional liquidation was not sufficient to protect the customers and creditors of the company.”

The AG said, therefore, pursuant to their authority under the DARE Act, and pursuant to an order of the Supreme Court of The Bahamas, the Securities Commission secured the assets of FTX Digital Markets to be held on behalf of and for the benefit and restitution of clients and creditors of FTX.

He explained that the Commission was the first regulator in the world to take significant steps with respect to the FTX group of companies, which has operations and regulated activities throughout the world. This was done for the purpose of protecting the interests of FTX’s customers and creditors, as well as the integrity of the Bahamian financial services industry.

Attorney General Pinder said, “The Securities Commission was able to move so quickly because of the strength of the legislative framework which was already in place in The Bahamas to regulate digital asset companies like FTX Digital Markets. No other jurisdiction in the world moved or could have moved this quickly in circumstances such as these.”

Bahamas News

Minister Moxey says AAM2024 is significant to the country

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NASSAU, The Bahamas – Making an address on the first day of Afreximbank’s Annual Meetings (AAM) and AfriCaribbean Trade and Investment Forum 2024 on Wednesday, June 12, Minister for Grand Bahama, the Hon. Ginger Moxey pointed out the significance of the meetings in The Bahamas, and the impact on Grand Bahama.

It is the first time AAM is held in the Caribbean region.  The 31st AAM sessions run June 12 – 14, 2024 at Baha Mar Resort, Cable Beach.  The theme for the event is: “Owning Our Destiny: Economic Prosperity on the Platform of Global Africa.”

She said, “Ladies and gentlemen, this AAM and AfriCaribbean Trade and Investment Forum is critical for nurturing the relationship we have intentionally progressed over the last few years, including the historic signing between Afreximbank and CARICOM, unlocking an astounding $1.5 billion in funding; the many trade missions between both regions; and tomorrow the signing of a Project Preparation Facility with Afreximbank and the Government of The Bahamas on the development of an Afro-Caribbean Marketplace and Logistics Center on Grand Bahama Island – my island — a magnificent center for the promotion of tourism, commerce and trade between both regions.

“As we contemplate the historical ties that bind us, may we recognize the significant role of trade and the immense opportunities that lie before us.

“Trade has always been the lifeblood of economies, and as we join hands to explore new avenues, great things will happen.”

Minister Moxey continued, “The Bahamas, with its strategic location and well-established infrastructure, stands as a gateway…and it is at the crossroads of two-way trade.

“Our beautiful country has emerged as a major transshipment terminal, facilitating the seamless flow of goods and creating linkages across continents.”

The Caribbean region is focused on trade and investment opportunities with Africa, and the meeting in Nassau demonstrates the importance of the matter, she said.

In closing, she said, “The Afro-Caribbean Marketplace and Logistics Center will not only boost economic growth but also strengthen the bonds of friendship and cultural understanding between both regions.”

 

PHOTO CAPTION

1st insert –  At the Welcome Reception for Afreximbank’s 31st Annual Meetings (AAM 2024) at Baha Mar Resort, Wednesday, Minister for Grand Bahama the Hon. Ginger Moxey, at podium, gives an address on the importance of the meetings.

2nd insert – In photos, Deputy Prime Minister and Minister of Tourism, Investments and Aviation the Hon. Chester Cooper chats with Prime Minister of Barbados, the Hon. Mia Mottley.

(BIS Photos/Kemuel Stubbs and Eric Rose)

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Disaster Risk Management Authority streamlines response agencies for greater effectiveness; this year, very active hurricane season predicted

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By BETTY VEDRINE
Bahamas Information Services

 

NASSAU, The Bahamas – The newly formed Disaster Risk Management Authority (DRM Authority), held a press conference, June 4, 2024 to mark the official opening of the 2024 Atlantic hurricane season. This season — which commences June 1 and ends November 30 — is anticipated to be the most active one seen in decades.  The press conference took place at the Disaster Risk Management Operations Centre, formerly NEMA, on Gladstone Road.

State Minister Leon Lundy

In attendance were: Minister of State in the Office of the Prime with the Responsibility for Disaster Preparedness and Management, the Hon. Leroy Lundy, along with several officials, DRM Authority Managing Director Aarone Sargent; DRM Authority Chairman Alex Storr; Director/former National Emergency Management Agency (NEMA) Captain Stephen Russell; and Permanent Secretary, Marcellus Taylor.

Delivering brief remarks, Minister Lundy assured the public that the government is taking every precaution to ensure the safety and welfare of Bahamians during the season.

“Our vision is clear: to have a country where every citizen and resident feels secure in the face  of a storm.  The government, along with our dedicated agencies, has been working relentlessly to enhance our disaster preparedness and response capabilities.  Central to these efforts is the establishment of the Disaster Risk Management Authority (DRM Authority), a body created to streamline and strengthen our disaster management functions,” said Mr. Lundy.

“The formation of the DRM Authority represents a pivotal change in our approach. By merging NEMA and the [DRM Authority], we have created a unified entity focused on preparing for, mitigating, and responding to disasters with unparalleled precision and efficiency. This consolidation ensures a comprehensive and cohesive framework for disaster risk management, embracing innovation to fortify our resilience.”

The National Oceanic and Atmospheric  Administration (NOAA) projects 8 to 13 hurricanes, with 4 to 7 of those being major hurricanes.  Mr. Lundy said that this ‘sobering’ forecast requires the highest level of preparedness and vigilance.

As Bahamians, he said, the nation has “faced the wrath of nature time and again” with hurricanes such as Frances, Joaquin, Matthew, and Dorian, which “have tested our resilience and left indelible marks on our history. However, it is from these trials that we draw our strength and resolve. Today, I  stand before you with an unwavering determination to outline our vision for a resilient and prepared Bahamaland.”

He explained that the DRM Authority is tasked with developing and implementing the National Disaster Risk Management Plan and the National Disaster Emergency Plan. These strategic blueprints, he said, cover risk assessment, disaster risk mitigation, preparedness measures, financial safeguards, and the strengthening of governance frameworks.

“Our ultimate goal is unequivocal: to enhance the  safety and security of our citizens in the face of hurricanes,” he said. “Our nation sits in the heart of Hurricane Alley, and the predictions are daunting. Yet, I have  complete faith in the dedication and capability of the agencies represented here today to  protect our people and our future.  The Royal Bahamas Defence Force, the Royal Bahamas  Police Force, the Water and Sewerage Corporation, BPL, BTC, Aliv, The Department of  Meteorology, The Department of Family Island Affairs, our Emergency Support Function  Groups (ESFs), and the DRM Authority all stand ready to meet the challenge.”

DRM Authority Chairman Alex Storr

He said that each agency plays a critical role in disaster preparedness and response strategy. He said that the government has been fortifying its ability to meet the requirements to meet its objectives, including upgrading the incident command systems for more effective coordination during disasters and deploying satellite data  systems throughout the Family Islands to provide real-time, high-quality insights for decision making. “Additionally, we are partnering with regional allies to incorporate advanced  technologies such as Unmanned Aerial Systems for rapid damage assessment and AI-driven early warning systems, thereby enhancing our ability to respond swiftly and effectively,” he said.

Mr. Lundy pointed out, however, that the government needed every Bahamian to take personal responsibility for their own preparedness. “Our message is simple and urgent: Don’t wait! Get  storm-ready now! Take the necessary steps to protect your home, your family, and your business. Ensure you have your supplies: stock up on canned goods, shutters or plywood, extra prescriptions, and other essentials. Make a plan and communicate it with your loved ones.  Knowing what to do in the event of a hurricane can save lives,” he said.  “Let us draw from the hard-earned lessons of past storms. We have harnessed those  experiences to strengthen our disaster management approach, and now we must apply that knowledge to prepare for what lies ahead.”

Representatives from a cross-section of agencies also gave preliminary reports on the progress in their respective areas. Those contributors included: Senior Officer, Bahamas Department of Meteorology, Jeffrey Greene; Chief Welfare Officer, Department of Social Services, Andrea Newbold; Officer in Charge of Communication in the Royal Bahamas Police Force, Superintendent Marlon Grant; and Officer for Training, Development and Disaster Management in the Department of Public Works, Bradley King.

(BIS Photos/Ulric Woodside)

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Grand Bahama as Center for Innovation says Minister in Budget presentation

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Garfield Ekon

Staff Writer

 

#TheBahamas, June 18, 2024 – The Phillip Davis administration in The Bahamas is moving to establish Grand Bahama as the “center of innovation” for the Caribbean, with focus on digital nomads, tech campuses, incubators, and an innovation fund.

Making the disclosure during her contribution to the 2024-2025 Budget Debate in the House of Assembly, recently, Minister for Grand Bahama, the Hon. Ginger Moxey said the main driver to build the economy of the area will be the Innovate242 Incubator, which has been set for completion by the end of the year.

The Minister who is serving as the co-chair of the Innovate242 Cabinet Subcommittee which was designed to establish the area as a showpiece for innovation in the Caribbean, said the Incubator will serve as a creative business center to cater to entrepreneurs as a ‘one-stop-shop” for business development from concept to launch.

“Of the four pillars, because of the immediate impact that it will have on empowering Bahamian entrepreneurs, the incubators have been made top priority. In the first instance, the islands of New Providence, Grand Bahama and Exuma have been identified for Incubators.  The second phase will include the islands of Cat Island, Eleuthera and Andros,” the Minister told the House.

She said the Incubator will be spearheaded by the Tourism Development Corporation, in collaboration with the Ministry for Grand Bahama, and will include representation from organisations such as the Bahamas Development Bank, Small Business Development Center, Inland Revenue, Bahamas Invest, Licensing Department of Grand Bahama Port Authority, Invest Grand Bahama, the Bahamas Trade Commission; a creative producer, and a technology-based provider.

Adding that the facility will house the centre for sustainability, to create an ecosystem for organisations, international and local, she said it will focus on research and development innovation, Climate Change, sustainability, inclusiveness, and will also converge and collaborate to create sustainable master plans for each island, with the capacity to expand to the rest of the region.

Ather aspects of the development will include the launch of the Young Innovators Club, through Innovate242, geared at inspiring innovation among the young people, while encouraging them to become involved in the sustained growth and development of The Bahamas.

“The focus areas of the Club will include themes of empowerment of the Bahamian people, sustainable development goals, the creation and promotion of Bahamian products, boat building competition, and the innovation and green technology competitions,” the Minister said.

The Minister further said the Innovate242 Incubator initiative will be utilised as a space for the young innovators where their creative juices can follow, and there are more to come, and that the people of Grand Bahama have advocated from then to now for the development.

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