Sam Bankman-Fried, often called SBF, was arrested by the Bahamian authorities, on Monday evening, after U.S. prosecutors filed charges against him. He was expected to testify before a Congressional committee, on Tuesday. FTX, a former massive crypto exchange collapsed last month. FTX filed for bankruptcy on November 11, after SBF resigned as CEO. The 30-year old entrepreneur had become a billionaire after starting the exchange but fell from grace after the company dramatically fell.
The U.S. Attorney for the Southern District of New York presented a sealed indictment to the island government of Bahamas. SBF is expected to be extradited to the U.S. and face a trial.
The Royal Bahamas Police Force confirmed that SBF had been arrested and said that the former would face a magistrate court in Nassau, Bahamas, on Tuesday.
Earlier, there had been reports of conflicting action between the U.S. and the Bahamas. However, the former FTX CEO’s recent arrest and an expected extradition to the U.S. indicate that both the governments are co-operating as bankruptcy and other procedures against FTX and its former CEO continue to evolve.
CNBC’s Andrew Ross Sorkin reported that SBF faces the the following charges:
wire fraud
wire fraud conspiracy
money laundering
securities fraud and
securities fraud conspiracy.
On Tuesday, December 13, the Securities and Exchange Commission (SEC) filed a complaint against Sam Bankman-Fried. It alleged that the 30-year old former CEO of FTX exchange had taken part in a “scheme to defraud equity investors in FTX.” Investor fans are very upset.
FTX was established in 2019, but collapsed suddenly after traders withdrew $6 billion in 72 hours. Following its collapse, many different nuggets of information emerged including the fact that the company secretly used $10 billion in customer funds to help its trading partner Alameda Research. FTX staff reportedly bought $121 million worth prime property in the Bahamas.
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