Former FTX boss Sam Bankman-Fried arrested in Bahamas

Former FTX boss Sam Bankman-Fried arrested in Bahamas

The ousted boss of a cryptocurrency platform faces criminal prosecution for his role in the young man’s company’s spectacular collapse.

Sam Bankman-Fried, Fallen Cryptocurrency Star and Former Boss of the Platform FTXNew York prosecutor Damian Williams announced the arrest in the Bahamas on Monday, December 12 at the request of US authorities. “We will have more information to provide in the charge sheet.” On Tuesday morning, he clarified in his tweet. “SBF” will appear in court in the capital Nasa on Tuesday.

America has “complain” Against the thirties and “He will probably be extradited.”, Bahamas Attorney General Ryan Pinder said in a statement posted on Twitter. Both countries “There is an interest in holding accountable persons associated with FTX who have betrayed the public trust and violated the law”, an archipelago located northeast of Cuba, said the kingdom’s prime minister, Philip Davis. The Bahamas will conduct its own “criminal investigation into the collapse of FTX,” he was quoted as saying in the statement.

The decline of the FTX group appears to be the result of the absolute concentration of control in the hands of a very small number of inexperienced and unsophisticated individuals. »

John Ray, FTX’s new boss

“SBF” has been in the media for a month, despite the risk of prosecution for fraud after the company’s spectacular implosion earlier this year, which valued it at $32 billion. He is scheduled to speak before a parliamentary committee of the House of Representatives on Tuesday, as is FTX’s new boss, John Ray. Former leaders of the bankrupt platform A “total failure” At all levels of control, they actually spend their customers’ money without counting it, the document released last Monday ahead of a congressional hearing said.

At first glance, “The collapse of the FTX Group appears to have resulted from the concentration of absolute control in the hands of a very small number of inexperienced and unsophisticated individuals who did not implement any of the systems or controls required of a company in which people’s money or assets are trusted.”, John Ray underlined. FTX, considered one of the world’s leading cryptocurrency exchanges, was suddenly unable to return money deposited there to customers in early November. The group announced the bankruptcy filing on November 11.

“Expenses of Excursion”

“I’m not trying to fool anyone”, Sam assured Bankman-Fried During a conference organized at the end of November The New York Times. “I obviously made a lot of mistakes and I would give anything to do a few things again.” The former muse of cryptos chose to proliferate interviews and speeches on Twitter despite the seriousness of the allegations against him. A graduate of the Massachusetts Institute of Technology, the son of Stanford University law professors, he was able to legitimize cryptocurrencies with the public and the political class. But his resentment and his hesitant tone during his recent speeches provide a stark contrast to the reassuring image he has built for himself in recent years.

An investigation has already revealed that assets deposited by clients at FTX were mixed with assets of Alameda, a brokerage and crypto investments firm founded by Sam Bankman-Fried. Alameda happily dips into FTX client funds to make risky bets. Many lawyers believe that such use of these funds constitutes fraud if it violates the terms of the contract between FTX and its clients.

FTX Company and A “advertisement” By the end of 2021, $5 billion in companies and investments “It’s worth just one serving” According to John Ray. The site has provided more than a billion dollars in loans or payments for corporate insiders. Now the aim is for the new leader, who oversaw several bankruptcy proceedings, including that of the former US energy giant Enron “Maximum Value” FTX still has assets to pay back as much as possible to the group’s customers and creditors.

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About the Author: Seth Sale

"Passionate creator. Wannabe travel expert. Reader. Entrepreneur. Zombie aficionado. General thinker."

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