After the anticipation, drama and conspiracy theories, Sam Bankman-Fried – the previous chief govt and founding father of the fallen crypto alternate FTX – is lastly arrested, a number of information retailers 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 night, Bahamian authorities arrested Samuel Bankman-Fried on the request of the U.S. authorities, primarily based on a sealed indictment filed by the southern district of New York,” Damian Williams, the U.S. Legal professional for the Southern District of New York, tweeted, in keeping with 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. Authorities, 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 Legal professional SDNY (@SDNYnews) December 12, 2022
Former FTX CEO Sam Bankman-Fried. Picture: Spencer Heyfron.
Collared Earlier than Congress Look
The arrest happens shortly earlier than Bankman-Fried’s digital look earlier than the Home Monetary Providers Committee on Tuesday, the place he was anticipated to talk on the failure of the cryptocurrency alternate one month in the past.
The Bahamas lawyer common’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 chargeable for the multibillion-dollar disaster of FTX.
Rep. Maxine Waters (D-CA), who chairs the Home Monetary Providers Committee, expressed “shock” at his seize and remorse that the U.S. Congress isn’t going to have the ability to hear his aspect of the story.
Working 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 referred to as the pictures at one of many world’s largest crypto exchanges, which was valued at $32 billion early this 12 months.
Sam Bankman-Fried Dealing with A number of Prison Expenses
Celebrities promoted his alternate platform in tv commercials, and the technological prodigy turned such a daily fixture in Washington, the place he contributed tens of thousands and thousands of {dollars} to numerous political campaigns.
Based on 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” supposed to stifle competitors by destroying FTX.
Bitcoin plummeted to a two-year low following the collapse of FTX as traders feared the corporate’s points would unfold to different crypto organizations, which they did.
In the meantime, New York Occasions 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 Alternate Fee has additionally carried out a separate set of prices in opposition to SBF.
Some authorized consultants say that Bankman-Fried may spend many years behind bars if discovered responsible of the costs in opposition to him.
Nonetheless, U.S. prosecutors should first search his extradition from the Bahamas to New York earlier than he can start serving his sentence.
