FTX Collapse: Sam Bankman-Fried Arrested within the Bahamas on US Government Request

FTX Collapse: Sam Bankman-Fried Arrested within the Bahamas on US Government Request
FTX Collapse: Sam Bankman-Fried Arrested within the Bahamas on US Government Request

The former CEO of failed cryptocurrency agency FTX, Sam Bankman-Fried, has been arrested within the Bahamas on the request of the US authorities, US and Bahamian authorities mentioned Monday.

The arrest was made Monday after the US filed legal expenses which might be anticipated to be unsealed Tuesday, in line with US Attorney Damian Williams. Bankman-Fried had been below legal investigation by US and Bahamian authorities following the collapse final month of FTX. The agency filed for chapter on November 11, when it ran out of cash after the cryptocurrency equal of a financial institution run.

“We count on to maneuver to unseal the indictment within the morning and may have extra to say at the moment,” Williams mentioned.

Bahamian Attorney General Ryan Pinder mentioned the Bahamas would “promptly” extradite Bankman-Fried to the US as soon as the indictment is unsealed and US authorities make a proper request. FTX is headquartered within the Bahamas and Bankman-Fried has largely remained in his Bahamian luxurious compound in Nassau because the firm’s failure.

A spokesman for Bankman-Fried had no remark Monday night. Bankman-Fried has a proper to contest his extradition, which may delay however not going cease his switch to the US.

Bankman-Fried’s arrest comes only a day earlier than he was because of testify in entrance of the House Financial Services Committee. Rep. Maxine Waters, D-Calif., chairwoman of the committee, mentioned she was “disillusioned” that the American public, and FTX’s prospects, wouldn’t get to see Bankman-Fried testify below oath.

Bankman-Fried was one of many world’s wealthiest folks on paper, with an estimated web value of $32 billion. He was a outstanding persona in Washington, donating hundreds of thousands of {dollars} towards largely left-leaning political causes and Democratic political campaigns. FTX grew to turn into the second-largest cryptocurrency alternate on the planet.

That all unraveled shortly final month, when stories known as into query the energy of FTX’s steadiness sheet. Customers moved to withdraw billions of {dollars}, however FTX couldn’t meet all of the requests as a result of it apparently used its prospects deposits to cowl dangerous bets at Bankman-Fried’s funding arm, Alameda Research.

Bankman-Fried mentioned lately that he didn’t “knowingly” misuse prospects’ funds, and mentioned he believes his hundreds of thousands of offended prospects will ultimately be made complete.

The House Financial Services Committee will nonetheless hear testimony Tuesday from present CEO, John Ray III. Ray, who took over FTX on November 11 and is a long-time restructuring specialist, has mentioned in courtroom filings that the monetary situations at FTX have been worse than at Enron.

Bahamian authorities plan to proceed their very own investigation into Bankman-Fried.

“The Bahamas and the United States have a shared curiosity in holding accountable all people related to FTX who could have betrayed the general public belief and damaged the legislation,” mentioned Bahamian Prime Minister Philip Davis, in a press release.

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