Sam Bankman-Fried, the former FTX CEO, has been arrested in the Bahamas. This follows on from FTX filing for Chapter 11 bankruptcy and SBF allegedly transferring company funds and assets after stepping down as CEO.
On December 12, 2022, AP News reported on a statement from the United States attorney’s office in New York that Sam Bankman-Fried, the former CEO of FTX, has been arrested by Bahamian authorities.
USA Damian Williams: Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. Government, based on a sealed indictment filed by the SDNY. We expect to move to unseal the indictment in the morning and will have more to say at that time.— US Attorney SDNY (@SDNYnews) December 12, 2022
According to the statement, the indictment is expected to be unsealed in the morning (presumably December 13) with more to be said at that time. The unsealing of these documents should give the public an idea of what SBF is in store for when he comes before various committees.
In a statement to CNBC, Bahamas’ Attorney General Ryan Pinder said that the U.S. was “likely to request his extradition.” Pinder continues, noting, “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.”
Recently, FTX has undergone a massive downfall, with the company filing for Chapter 11 bankruptcy. This follows the cryptocurrency stock exchange acquiring Voyager Digital’s assets and creating a partnership with GameStop (GME).
While FTX was collapsing around him, FTX claims that SBF transferred funds to the Bahamas after the bankruptcy filings. This occurred after Bankman-Fried stepped down as CEO. CNBC noted that if the federal government pursues fraud charges, SBF could be facing life in prison.
The cryptocurrency and digital asset world appears to be hitting some hurdles recently. It will be interesting to see how the industry adjusts to various regulations and the aftermath of these legal events. We’ll be sure to keep you up to date as this situation unfolds.
Sam Chandler posted a new article, Former FTX CEO and crypto winter poster child Sam Bankman-Fried has been arrested
This guy is such a crook. Glad there's a chance he might face justice.