After the anticipation, drama and conspiracy theories, Sam Bankman-Fried – the previous chief government and founding father of the fallen crypto alternate FTX – is lastly arrested, a number of information shops reported.
Authorities arrested Bankman-Fried on Monday, December 12, in The Bahamas – the place FTX is headquartered – after the crypto tycoon was criminally charged by U.S. prosecutors.
Bankman-Fried was arrested with none untoward incident.
“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. government, based on a sealed indictment filed by the southern district of New York,” Damian Williams, the U.S. Attorney for the Southern District of New York, tweeted, in response to Agence France-Presse through The Philippine Star.
USA Damian Williams: Earlier this night, Bahamian authorities arrested Samuel Bankman-Fried on the request of the U.S. Government, primarily based on a sealed indictment filed by the SDNY. We count on to maneuver to unseal the indictment within the morning and may have extra to say at the moment.
— US Attorney SDNY (@SDNYnews) December 12, 2022
Former FTX CEO Sam Bankman-Fried. Image: Spencer Heyfron.
Collared Before Congress Appearance
The arrest happens shortly earlier than Bankman-Fried’s digital look earlier than the House Financial Services Committee on Tuesday, the place he was anticipated to talk on the failure of the cryptocurrency alternate one month in the past.
The Bahamas legal professional basic’s workplace issued a information launch stating that they might be holding Bankman-Fried in anticipation of an extradition request from the U.S. authorities.
His arrest is the primary tangible step taken by authorities to carry people answerable for the multibillion-dollar disaster of FTX.
Rep. Maxine Waters (D-CA), who chairs the House Financial Services Committee, expressed “surprise” at his seize and remorse that the U.S. Congress isn’t going to have the ability to hear his aspect of the story.
Operating FTX, Bankman-Fried gathered billions of {dollars} in private wealth. The arrest is a startling reversal of fortune for the 30-year-old mogul who known as the photographs at one of many world’s largest crypto exchanges, which was valued at $32 billion early this 12 months.
Sam Bankman-Fried Facing Multiple Criminal Charges
Celebrities promoted his alternate platform in tv commercials, and the technological prodigy turned such an everyday fixture in Washington, the place he contributed tens of thousands and thousands of {dollars} to numerous political campaigns.
According to Reuters (through Rappler), FTX, Bankman-Fried’s dad and mom and senior executives of the corporate acquired over 20 properties within the Bahamas valued over $120 million through the previous two years.
In a December 12 interview with Forbes, SBF as soon as once more blamed Binance CEO Changpeng Zhao for his firm’s downfall. He alleged that “CZ” meant to stifle competitors by destroying FTX.
Bitcoin plummeted to a two-year low following the collapse of FTX as buyers feared the corporate’s points would unfold to different crypto organizations, which they did.
Meanwhile, New York Times disclosed, citing a supply with data of the state of affairs, that Bankman-Fried is charged with wire fraud, securities fraud, wire fraud conspiracy, securities fraud conspiracy, and cash laundering.
The U.S. Securities and Exchange Commission has additionally carried out a separate set of fees towards SBF.
Some authorized consultants say that Bankman-Fried would possibly spend a long time behind bars if discovered responsible of the fees towards him.
However, U.S. prosecutors should first search his extradition from the Bahamas to New York earlier than he can start serving his sentence.
