FTX Founder Sam Bankman-Fried Arrested in Bahamas

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The disgraced ex-CEO of FTX Sam Bankman-Fried has been arrested in the Bahamas, in accordance to a statement from the Royal Bahamas Police Pressure.

Bankman-Fried, also identified as SBF, was arrested following “receipt of official notification from the United States that it has filed prison costs in opposition to SBF and is possible to ask for his extradition,” a assertion go through.

The US Attorney’s Place of work for the Southern District of New York verified the request in a assertion through Twitter. 

“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. Governing administration, dependent on a sealed indictment filed by the SDNY,” it claimed. “We expect to move to unseal the indictment in the morning and will have more to say at that time.”

Bahamas Law enforcement confirmed in a assertion shared with Decrypt that legislation enforcement arrested Bankman-Fried, without the need of incident, at 6 p.m. at his condominium intricate in Albany. SBF’s arrest resulted from “various economic offences against rules of the United States, which are also offences against regulations of the Commonwealth of The Bahamas,” the assertion examine.

Bankman-Fried was because of to speak to lawmakers in Washington, D.C. tomorrow about the collapse of the digital asset trade immediately after agreeing to testify in advance of a Home Economic Expert services Committee but declining an invitation from the Senate.

It isn’t yet regarded what costs U.S. authorities strategy to bring from Bankman-Fried, but legal experts convey to Decrypt it’s probable to be some blend of bank and wire fraud. The Bahamas has an extradition treaty with the United States.

FTX went bust final thirty day period soon after allegedly mixing money from the trade with its investing home, Alameda Research—which was also launched by SBF. 

When end users of the exchange got light-weight of mismanagement, they tried using to withdraw funds from FTX, which led to a lender operate on the exchange. FTX was then pressured to admit that it did not hold one-to-a person reserves of shopper property and afterwards submitted for personal bankruptcy. 

The company’s new CEO, John J. Ray III, an skilled insolvency lawyer who assisted Enron adhering to its meltdown, today mentioned the FTX collapse was caused by “a very modest team of grossly inexperienced and unsophisticated folks.”

The opinions arrived in the sort of well prepared testimony that Ray plans to provide to the Dwelling Economical Services Committee tomorrow early morning. In that testimony, Ray lays out precisely what went mistaken with FTX and its sister company Alameda, which includes the commingling of resources, the absence of reputable financial statements, and the “use of laptop infrastructure” that gave senior people at the organization accessibility to shopper assets.

Alameda also had the unchecked skill to borrow money on FTX to use for its own reasons, according to Ray.

Editor’s observe: This tale was updated right after publication to consist of additional particulars with regards to the arrest of Sam Bankman-Fried.

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