A month after the FTX stock market crashed, Sam Bankman-Fried, the company’s co-founder and CEO, was arrested in the Bahamas at the request of the US government. Here are the details…
Sam Bankman-Fried arrested in Bahamas
Bahamas Attorney General Ryan Pinder said on Monday (December 12th) that they have detained the SBF pending extradition. Federal prosecutor Damian Williams in Manhattan confirmed on Monday, December 12, that he had filed confidential charges against Bankman-Fried. He then said that the indictment would be announced by morning.
Before Williams’ announcement came an announcement from Bahamian authorities confirming the arrest:
The Bahamas and the United States have a common interest in holding accountable any individuals associated with FTX who may have betrayed public trust and broken the law. While the U.S. is filing individual criminal charges against SBF, the Bahamas will continue its own regulatory and criminal investigations into FTX’s collapse, with continued collaboration with law enforcement and regulatory partners in the U.S. and elsewhere.
Will Sam Bankman-Fried go to the US House of Representatives?
cryptocoin.com As we have reported, Bankman-Fried was scheduled to testify before the US House of Representatives on December 13. The founder of FTX tried to delay the hearing, saying that he still did not know all the details of the events that led to the collapse of FTX. Following SBF’s arrest, Maxine Waters, Chair of the House Financial Services Committee, made a statement. She expressed her disappointment and surprise at SBF’s arrest. Waters, in the message he published after his arrest, said:
I was surprised to hear that Sam Bankman-Fried was arrested in the Bahamas on the orders of the United States Attorney for the Southern District of New York. It’s time to begin the process of bringing Mr. Bankman-Fried to justice. However, as the public knows, my team and I have been working diligently for the past month to get Mr. Bankman-Fried’s testimony before our Committee tomorrow morning. We received confirmation this afternoon from Mr. Bankman-Fried and his lawyers that he was planning to appear before the Committee tomorrow, but was later arrested.
FTX founder seems unable to speak today
Maxine Waters believes that the American public should still hear directly from SBF about actions that harm crypto exchange FTX’s more than one million customers.
The public eagerly awaited these answers under oath before Congress, and the timing of this arrest robs the public of that opportunity. While I am disappointed that we will not hear from Mr. Bankman-Fried tomorrow, we are determined to get to the bottom of what has happened, and the Committee looks forward to starting our investigation by hearing from John Ray III tomorrow.
What’s happened so far: When did the FTX drama begin?
As we previously reported, Bankman-Fried and its partners are allegedly misusing client funds. These individuals allegedly transferred customer deposits to Alameda Research for risky bets on faltering crypto companies. The report, released on Nov. 2, stated that Alameda holds a large amount of funds in FTX’s own crypto, FTT. Then everything fell like dominoes. Until November 10, FTX has stopped customers’ withdrawals; filed for bankruptcy protection the next day. Moreover, the collapse of FTX caused platforms such as Genesis and BlockFi to have a hard time.
After FTX applied for Chapter 11 protection, the new CEO became John Ray III. Ray criticized the company’s mismanagement in a court filing. “In my career, I have rarely seen such an instance of corporate controls failing completely and reliable financial information officially unavailable,” Ray said. Moreover, last week the FBI, prosecutors, Justice Department officials and John Jay Ray III met at SDNY’s headquarters in downtown Manhattan.
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