FTX’s Bahamas Headquarters Was the First Clue: Stephen Mihm

In retrospect, Sam Bankman-Fried and his cryptocurrency gang gave investors ample reason to steer clear of FTX: misleading claims that investments were covered by the Federal Deposit Insurance Corp., too-cozy-for-comfort relations with government regulators and other problematic behavior.

But the biggest red flag may have been the first: the crypto exchange’s relocation to the Bahamas. For centuries, the island nation has been defined by its close ties to dodgy, even criminal finance. Far from being an anomaly, FTX was simply the latest in a long line of sketchy enterprises.

The outlaw status of the Bahamas dates back to the 17th century, ...