FTX founder and former chairman Sam Bankman-Fried was arrested in the Bahamas at the request of the United States, announce US Department of Justice.
Arrest Sam Bankman Fried in the Bahamas, where FTX is headquartered, occurred after “receiving an official notification from the United States reporting that criminal charges have been brought against [Sam Bankman-Fried] The Bahamas Attorney General’s Office said in a statement obtained by CNBC and other media outlets.
The US Attorney’s Office in Manhattan said in a tweet that Sam Bankman-Fried was arrested “at the request of the US Government pursuant to a sealed indictment.” »
It is not clear what criminal charges Sam Bankman-Fried will face, but the US Attorney’s Office said it plans to release the indictment.
A few months ago, 30-year-old Sam Bankman-Fried was considered one of the rising stars in cryptocurrency, with an estimated net worth of $26.5 billion thanks to FTX and hedge fund Alameda Research. However, the two companies collapsed dramatically last month, after several revelations revealed that the two companies’ earnings were closely linked and that they were exposed to serious risks.
In early November, Coindesk revealed that a large portion of Alameda’s balance sheet consisted of tokens issued by FTX and FTTs, and after the cryptocurrency exchange collapsed, multiple outlets reported that Alameda had quietly borrowed billions of dollars from FTX clients’ funds. The liquidation of the FTT tokens created solvency issues for FTX, prompting the company to file for bankruptcy and causing Sam Bankman-Fried to step down from running the company, replacing him with a new CEO who wrote in the bankruptcy filings “Never in my career have I seen such a complete failure to company controls […] Who happened here.” Sam Bankman-Fried publicly apologized and insisted that the collapse of FTX was due to his own mistakes, not fraud, but US authorities quickly opened an investigation into the incident, and some legal experts argued that the founder of FTX could face criminal charges.
In recent weeks, Sam Bankman Freed has spoken out to the press despite the accusations against him, giving lengthy interviews with Forbesto me The New York Times and other news agencies. In an interview with timesHe claimed not to be concerned about possible criminal charges.
Translated article from the American magazine Forbes – Author: Joe Walsh
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