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Trouble in the Bahamas following FTX collapse: Report

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Following the collapse of crypto change FTX, which was headquartered within the island nation of Bahamas, Bahamians are reportedly nonetheless looking for a method to make sense of all the things, whereas remaining optimistic concerning the future. 

In keeping with a report by the WSJ, the island nation — which encouraged cryptocurrency corporations to really feel at house with their “copacetic regulatory contact” — has been rocked by the implosion of FTX. 

The Bahamas, which was additionally arduous hit by hurricane Dorian in 2019 and the pandemic shortly afterward in 2020, was already struggling to seek out methods to strengthen its financial system which depends closely on tourism and offshore banking for a bulk of its GDP. It appeared that the prime minister of the Bahamas, Philip Davis, and his authorities believed crypto might play a essential function within the island’s financial restoration.

Now, the neighborhood means that FTX’s sudden implosion has left a path of unemployment on the tiny 80-square-mile island. Whereas performing at full capability, FTX offered employment for locals, because it reportedly spent over “$100,000 every week on catering” and likewise arrange a non-public shuttle service to move staff across the island. FTX additionally employed quite a few native Bahamians in areas comparable to logistics, occasions planning, and regulatory compliance, in line with the WSJ. 

With the collapse of FTX, many high-spending foreigners who labored for the corporate and as soon as boosted the native financial system have reportedly fled the island, leaving Bahamanian safety guards to now guard “almost vacant buildings.”

Related: SBF, FTX execs reportedly spend millions on properties in the Bahamas

Within the aftermath of the autumn of FTX, some crypto neighborhood members have stated they really feel no sympathy for the consequences of the collapse of FTX on the tiny island nation.

A contributor on the Hacker information with the username matkoniecz commented; “On condition that Bahamas assist wealthy folks and corporations to evade taxes, my sympathy to unfavorable penalties of which can be restricted.” 

One other consumer going by the deal with Exendroinient00 shared, “Nothing fallacious with inviting each scammer to do scamming in your islands,” in reference to the island’s legal guidelines, which appear to incentivize offshore banking actions on its island. 

On Oct. 18, Cointelegraph reported that the Bahamian securities regulator ordered the transfer of FTX’s digital assets to a pockets owned by the fee “for safekeeping.”

In keeping with an announcement by the Royal Bahamas Police Pressure sent to Reuters on Nov 13, an investigation of doable prison misconduct over the insolvency of FTX is underway by monetary investigators and the Bahamas securities regulators.