Bahamas News
Deputy Premier viewed FTX as too risky; no TCIG funds invested
By Dana Malcolm
Staff Writer
#TurksandCaicos, December 16, 2022 – The Finance Minister of the Turks & Caicos expressed extreme skepticism about investing in Cryptocurrencies, adding that no TCI Government monies went down in the epic billion dollar collapse of FTX Digital Bahamas.
In a statement obtained by Magnetic Media E Jay Saunders, TCI Deputy Premier and Minister of Finance said, “I’m not sure if anyone from the TCI invested in FTX, but I wouldn’t be surprised,” he said, directing us to the Financial Services Commission.
What Saunders could tell us though was that no Government funds had been caught up in the affair. In response to our queries he replied with, “No, of course not. I’m very, very cautious when it comes to Crypto – mainly because it allows for the globalization of crime – and I certainly wouldn’t sign off on the TCI Government or Statutory Bodies investing in it.”
The statement by Saunders rings true over and over again as new CEO John Ray III revealed that hundreds of records have just disappeared into thin air. He said FTX’s collapse was caused in part by a complete lack of experience in its senior leadership and little to no proper governance structures in the company in a hearing before the US Congress on Tuesday December 13.
“The FTX group’s collapse appears to stem from absolute concentration of control in the hands of a small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company that is entrusted with other people’s money or assets,” he explained. 
The fill-in CEO who has extensive experience in managing failed companies like FTX said this was the worst one he had ever seen.
Not only did senior management have free access to customer funds and could move them at will, the security which protected the private keys for millions of dollars was ineffective and poorly encrypted. Another company owned by SBF and headed by an ex-girlfriend of his, Alameda was able to borrow as much FTX funds as it wanted at will.
Ray said the company also could not provide complete documents made for more than 500 investments with company funds and there was a lack of personnel in financial and risk management functions, which are usually present in any company close to the size of FTX Group.
Alarm bells about FTX which has its home in The Bahamas began to ring all across the globe when the company filed for Bankruptcy on Friday November 11 and customers were suddenly locked out of their trading accounts, unable to withdraw the millions they had stored with the company.
Bowing to the desperate pleas of its citizens who had invested, the United States launched a federal fraud investigation alleging that former CEO, Sam Bankman-Fried had been intentionally using customer funds for his own gain.
Ray says he has already found $1 billion worth of assets but is convinced that may not be everything and says Bankman-Fried or other senior officers may have squirreled away funds on thumb drives.
Complete recovery will be difficult because of the extremely poor record-keeping done by Bankman Fried and his team but Ray is committed to the task and says US investors will recoup their assets.
For now, it is unknown if Turks and Caicos Islanders were drawn in by the lure and promise of lucrative returns pitched to the global community by FTX, once the world’s third largest crypto currency exchange.
Magnetic Media has reached out to Nigel Dakin, TCI Governor, who oversees the regulatory aspect of the FSC for answers.
Photo Caption: Some 3.5 Million people have viewed the FTX Hearing on PBS News Hour alone. Sam Bankman-Fried, the former CEO of FTX Digital in The Bahamas was due to appear at this hearing on December 13; he was arrested in Nassau, Bahamas the day before and arraigned on the day of this hearing designed to unearth and expose the alleged misdeeds of the crypto currency exchange which filed for bankruptcy in the US. Testifying was John Ray III, who is the interim CEO of FTX, which is based in The Bahamas.
RBC Royal Bank (Bahamas) Limited (“RBC”) is pleased to announce the recent appointment of Kerryl-Lyn King-Henry as Country Manager and Area Vice President (“AVP”), Personal and Commercial Banking, Turks & Caicos Islands (TCI).
In her new role as Country Manager and AVP, King-Henry will take on full responsibility for the bank’s operations, strategy, and development in the TCI market, with a strong focus on solidifying partnerships with the Government, regulatory bodies, and the local community.
King-Henry brings to the role a dynamism influenced by nearly 25 years of industry experience. Prior to her new appointment, she served as AVP of Business Banking in Trinidad and Tobago. She has held progressively senior roles within both personal and commercial banking, as well as various functional units.
King-Henry holds a Master of Business Administration (MBA) degree, with a specialization in Leadership, FinTech and Big Data Analysis, in addition to a Bachelor’s Degree in Business Administration. Further enriching her professional profile, Kerryl-Lyn is a certified John C. Maxwell Coach, Trainer, Teacher, and Speaker. Her passion for leadership and development is matched by her commitment to community service, as she actively volunteers her time and leverages her professional expertise to mentor and support others. “
Kerryl-Lyn’s extensive experience and proven leadership capabilities make her the perfect choice to lead our operations in the Turks & Caicos Islands,” said Ericka Rolle, RBC’s Managing Director and Vice President, Personal Banking, The Bahamas and TCI.
“Her commitment to excellence, combined with a genuine passion for community engagement, aligns perfectly with our Bank’s purpose of helping clients thrive and communities prosper. We are excited to see the positive impact she will undoubtedly bring to her new role,” she added.
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