First Mover Americas: Bahamas on Defense After FTX's Collapse
This article originally appeared in First Mover, CoinDesk’s daily newsletter putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.
BTC/ETH prices per CoinDesk Indices, as of 7 a.m. ET (11 a.m. UTC)
The Bahamas' attorney general defended the country’s regulatory regime amid crypto exchange FTX’s “debacle.” The Bahamas "is a nation of laws," Ryan Pinder said in support of the island's actions in the wake of the exchange's collapse. During a 23-minute taped speech, Pinder summarized FTX's downfall and alluded to the Bahamas' government's actions, while also seeking to reassure investors and tourists that the country is a safe place to visit and operate a business.
Cryptocurrency fraud has climbed in the United Kingdom by a third, according to data from the U.K. police unit Action Fraud. Crypto fraud in the nation has risen by 32% to 226 million pounds ($273 million) in one year.
U.S. state regulators are investigating crypto trading firm Genesis Global Capital for possibly violating securities laws, according to a report from Barron’s. The report said Alabama Securities Commission Director Joseph Borg indicated that his agency and several other states are involved in the investigations, which focus on whether Genesis and other companies persuaded residents of their states to invest in crypto securities without having the proper registrations. Genesis is owned by CoinDesk’s parent company, Digital Currency Group.
Chart of the Day
- The chart shows a record outflow of BTC from centralized exchanges last week.
- Investors' rush to take direct custody of coins represents dwindling confidence in centralized trading platforms in the wake of FTX's bankruptcy.
- Early this month, Binance CEO Changpeng Zhao, called on members of the crypto community to take personal control of their digital assets.