Ex-FTX boss Sam Bankman-Fried arrested in Bahamas

Spread the love

L&rsquo ;ex-FTX boss Sam Bankman-Fried arrested in Bahamas

Sam Bankman-Fried testifies during a hearing before the House Financial Services Committee at the Rayburn House Office Building on Capitol Hill on December 8, 2021 in Washington.

Sam Bankman-Fried (SBF), a fallen cryptocurrency star and former boss of the FTX platform, was arrested in the Bahamas on Monday at the request of US authorities, announced Damian Williams, a New York prosecutor.

We will have more information to give on the indictment on Tuesday morning, he said in his tweet.

SBF had been making media appearances for a month despite the risk of lawsuit for fraud after the spectacular implosion of the company, valued at 32 billion dollars at the beginning of the year.

The United States has filed a complaint against the 30-year-old and will probably request his extradition, explained the Attorney General of the Bahamas, Ryan Pinder, in a press release relayed on Twitter.

The two countries have an interest in holding accountable individuals associated with FTX who may have betrayed the public trust and broken the law, said Philip Davis, prime minister of the kingdom, an archipelago located northeast of Cuba.

The Bahamas will conduct its own criminal investigation into the FTX collapse, he added, quoted in the statement.

Sam Bankman-Fried was supposed to speak before a House of Representatives committee on Tuesday, as was John Ray, the new boss of FTX.

Ex-executives of bankrupt platform showed complete failure at all levels of control, mindlessly spending their customers' money, John Ray claimed in a document released on the eve of Monday ;Congress hearing.

At first glance, the collapse of the FTX group appears to be the result of the absolute concentration of control in the hands of a very small group of grossly inexperienced and not very savvy individuals, who put no implements none of the systems or controls required for a company entrusted with other people's money or assets, the official noted.

Considered one of the world's leading cryptocurrency exchanges, FTX was suddenly unable, in early November, to pay back to its customers the money they had deposited there.

The group announced its bankruptcy filing on November 11.

I never tried to scam anyone whatever, assured Sam Bankman-Fried at the end of November during a conference organized by the New York Times.

“I definitely made a lot of mistakes and I would give anything to be able to do some things again. »

— Sam Bankman-Fried

The former muse of cryptos has chosen to multiply interviews and speeches on Twitter despite the seriousness of the accusations which weigh on him.

A graduate of the Massachusetts Institute of Technology, the son of law professors at Stanford University, he had managed to legitimize cryptocurrencies with the general public and the political class.

However, his contrite air and hesitant tone during his recent speeches offer a stark contrast to the reassuring image he had forged for himself in recent years.

The investigation has already shown that the assets deposited by customers on FTX were mixed with those of the brokerage and crypto investments company Alameda, also founded by Sam Bankman-Fried.

And Alameda gleefully dipped into FTX client funds to make risky bets.

Such use of these funds would constitute fraud if it flouted the terms of the agreement between FTX and its customers, believe many legal scholars.

FTX also went on a spending spree starting in late 2021 with five billion dollars in businesses and in investments that may only be worth a portion of that, according to John Ray.

The platform has also disbursed, in loans or in payments, more than $1 billion to people within the company.

For the new leader, who oversaw several bankruptcy proceedings, including that of former US energy giant Enron, the goal now is to maximize the value of the assets still held by FTX to repay as much of the debt as possible. customers and creditors of the group.

Previous Article
Next Article