FTX founder Sam Bankman-Fried arrested in the Bahamas
NEW YORK –
The former CEO of failed cryptocurrency agency FTX, Sam Bankman-Fried, has been arrested within the Bahamas on the request of the U.S. authorities, U.S. and Bahamian authorities mentioned Monday.
The arrest was made Monday after the U.S. filed legal costs which are anticipated to be unsealed Tuesday, in keeping with U.S. Attorney Damian Williams. Bankman-Fried had been beneath legal investigation by U.S. and Bahamian authorities following the collapse final month of FTX. The agency filed for chapter on Nov. 11, when it ran out of cash after the cryptocurrency equal of a financial institution run.
“We expect to move to unseal the indictment in the morning and will have more to say at that time,” Williams mentioned.
Bahamian Attorney General Ryan Pinder mentioned the Bahamas would “promptly” extradite Bankman-Fried to the U.S. as soon as the indictment is unsealed and U.S. authorities make a proper request. FTX is headquartered within the Bahamas and Bankman-Fried has largely remained in his Bahamian luxurious compound in Nassau for the reason that firm’s failure.
A spokesman for Bankman-Fried had no remark Monday night. Bankman-Fried has a proper to contest his extradition, which may delay however unlikely cease his switch to the U.S.
Bankman-Fried’s arrest comes only a day earlier than he was attributable to testify in entrance of the House Financial Services Committee. Rep. Maxine Waters, D-Calif., chairwoman of the committee, mentioned she was “disappointed” that the American public, and FTX’s clients, wouldn’t get to see Bankman-Fried testify beneath oath.
Bankman-Fried was one of many world’s wealthiest folks on paper, with an estimated web value of US$32 billion. He was a outstanding character in Washington, donating tens of millions of {dollars} towards largely left-leaning political causes and Democratic political campaigns. FTX grew to develop into the second-largest cryptocurrency alternate on this planet.
That all unravelled rapidly final month, when stories known as into query the power of FTX’s steadiness sheet. Customers moved to withdraw billions of {dollars}, however FTX couldn’t meet all of the requests as a result of it apparently used its clients deposits to cowl dangerous bets at Bankman-Fried’s funding arm, Alameda Research.
Bankman-Fried mentioned just lately that he didn’t “knowingly” misuse clients’ funds, and mentioned he believes his tens of millions of offended clients will ultimately be made entire.
The House Financial Services Committee remains to be anticipated to listen to testimony Tuesday from present CEO John Ray III. Ray, who took over FTX on Nov. 11 and is a long-time restructuring specialist, has mentioned in courtroom filings that the monetary circumstances at FTX had been worse than at Enron.
Bahamian authorities plan to proceed their very own investigation into Bankman-Fried.
“The Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law,” mentioned Bahamian Prime Minister Philip Davis, in a press release.
The U.S. Securities and Exchange Commission mentioned it had approved separate costs associated to alleged violations of securities legal guidelines and would file them publicly Tuesday.
