Published , by Sam Chandler
Published , by Sam Chandler
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.
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).
Since then, Binance backed out of a takeover deal, GameStop ended the partnership, and investors started suing FTX celebrity spokespeople.
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.