Sam Bankman-Fried detained: The disgraced founder of the defunct cryptocurrency exchange FTX, was detained on Monday in the Bahamas after criminal charges were brought by American prosecutors.
The Bahamas’ government issued a statement stating that “S.B.F.’s detention followed receipt of formal notification from the United States that it has filed criminal charges against S.B.F. and is likely to request his extradition.”
In relation to the collapse of FTX, Bankman-Fried was scheduled to testify before Congress
The arrest was the most recent astounding turn of events in one of the most spectacular declines in company reputation in recent business history. The 30-year-old Mr. Bankman-Fried was supposed to appear before Congress on Tuesday regarding the fall of FTX, which was one of the most influential companies in the nascent crypto market before it practically collapsed last month after a run on deposits revealed a $8 billion hole in its account.
The Securities and Exchange Commission announced that charges related to Mr. Fried have been approved
A sealed indictment would be made public on Tuesday, according to prosecutors for the Southern District of New York, who confirmed that Mr. Bankman-Fried had been charged. Charges “related to Mr. Bankman-violations Fried’s of our securities laws” have been authorised, according to a statement from the Securities and Exchange Commission.
According to a source with knowledge of the case, Mr. Bankman-Fried was charged with money laundering, securities fraud, wire fraud, and conspiracy to commit wire fraud.
Sources stated that Mr. Bankman-Fried was held by Bahamian authorities
The single defendant listed in the indictment, Mr. Bankman-Fried, was detained by Bahamian officials, the source claimed. According to a statement from the Bahamian police, he was detained at his apartment complex in the Albany resort shortly after 6 o’clock in the evening. It was unknown when Mr. Bankman-Fried might be transferred to the US. Although the Bahamas and the United States have an extradition agreement, the procedure may take weeks or even months if the criminal defendant challenges it.
According to a person acquainted with the situation, Mr. Bankman-Fried cooperated throughout the arrest. He will spend the night in a cell at a police station. He is expected to appear in Magistrate Court on Tuesday.
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Early last month, a run on deposits revealed a $8 billion hole in FTX’s finances, sparking the start of the company’s demise. A rival organisation, the massive cryptocurrency exchange Binance, offered Mr. Bankman-Fried a lifeline, but the agreement failed after Binance looked at FTX’s financial records.
Mr. Bankman-Fried swiftly earned a bad reputation in the cryptocurrency sector. There is little chance that the hundreds of thousands of consumers who have money stranded on FTX will ever get it back.
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