BREAKING: Sam Bankman-Fried Reportedly Arrested By Bahamas Authorities
It is currently being reported that Sam Bankman-Fried, the founder and former CEO of cryptocurrency exchange FTX, has been arrested by authorities in the Bahamas.
The arrest reportedly occurred today, on December 12, by The Royal Bahamas Police Force, as reported by the Office of the Attorney General of The Bahamas. The arrest follows notification from the US that they have filed criminal charges against Bankman-Fried, and will likely request extradition.
Details on the charges from the United States were not elaborated on.
Commenting on the arrest, the Prime Minister of The Bahamas, Philip Davis, is quoted as saying, “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. While the United States is pursuing criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere.”
Reports are coming in however that Maxine Waters, whom chairs the House Financial Services Committee, was “surprised” by the news.
The arrest comes shortly after new FTX CEO John J. Ray III, who is overseeing the bankruptcy filing, unveiled in a series of prepared remarks that FTX embarked on a $5 billion “spending binge” in 2021 and 2022 to buy a “myriad of businesses and investments, many of which may be worth only a fraction of what was paid for them.” He added that the exchange also made numerous “loans and other payments to the tune of $1 billion to company insiders. As if that wasn’t damaging to SBF’s insistence that he did nothing wrong, Ray also said FTX commingled its customers’ funds with those of Alameda Research to conduct margin trading, exposing their assets to extensive losses.
According to legal experts cited by CNBC, SBF could could face life imprisonment should US prosecutors seek wire or bank fraud charges. Bernie Madoff, a defacto ponzi scheme mastermind, is currently serving 150 years behind bars— effectively life in prison. A sealed indictment filed by Southern District of New York attorney Damien Williams is expected to be opened tomorrow morning, likely unveiling further details of criminal charges against SBF.
More to come.
Information for this briefing was found via the Twitter and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
2 thoughts on “BREAKING: Sam Bankman-Fried Reportedly Arrested By Bahamas Authorities”
Those that perpetuated the fraud by way of rhetoric promoting it seem more attached to the terminology? Financial greed! As they took money in a way that seemed without altruistic intent . But more with intent to deceive .I think if the shareholders where to sue those that promoted the stock the judge would concur with their position that they where in fact mislead by pitchmen.
As it is a financial crime to actively sell financial products without being licensed to actually do so! Made worse when they fail to understand the financial product they are selling.