Trouble in the Bahamas following FTX collapse: Report

After the collapse of the crypto exchange FTX, which was located in the capital of the island of the Bahamas, the people of the Bahamas are said to be still trying to find a way to know everything, while still having hope for the future.

According to a report by the Wall Street Journal, the island nation – which encouraged cryptocurrency companies to stay at home with a “copacetic regulatory touch” – was shaken by the explosion of FTX.

The Bahamas was hit hard by Hurricane Dorian in 2019 and the pandemic soon after in 2020 and was already struggling to find ways to boost its economy, which relies heavily on tourism and offshore banking for much of its domestic revenue. It seems that the Prime Minister of the Bahamas, Mr. Philip Davis, and his government believe that crypto can play a big role in restoring the economy of the island.

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Now, local residents are reporting that the sudden explosion of FTX has left the small 80-square-mile island without jobs. Once fully operational, FTX provided jobs to locals, reportedly spending more than “$100,000 a week on food,” and set up a private transportation service to transport workers around the island. FTX has also hired several local Bahamians in areas such as transportation, event planning and compliance, according to the WSJ.

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Due to the collapse of FTX, many high-spending tourists who worked for the company and once boosted the local economy are said to have fled the island, leaving Bahamian security guards to look after “empty houses.”

Related: SBF, FTX execs reportedly spending millions on property in Bahamas

After the collapse of FTX, some members of the crypto community expressed their displeasure with the consequences of the collapse of the small island nation.

Hacker News user Matkoniecz said, “Since the Bahamas helps wealthy individuals and companies evade taxes, my sympathy for the negative consequences is minimal.”

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Meanwhile, Exendroinient00 shared, “There is nothing wrong with inviting any fraudsters to commit fraud on your islands,” perhaps referring to the island’s laws that seem to encourage offshore banking.

On Oct. 18, Cointelegraph reported that the Bahamas security regulator ordered the transfer of FTX digital assets to the board’s “secured” wallet.

According to a statement from the Royal Bahamas Police Force sent to Reuters on Nov 13, an investigation into possible criminal activity due to the insolvency of FTX is being carried out by financial investigators and Bahamian security authorities.