FTX founder Sam Bankman-Fried has been taken into custody for charges stemming from his massive crypto collapse.
On Monday, Bankman-Fried was arrested in the Bahamas, where the FTX headquarters had been located. The 30-year-old was detained by Royal Bahamas Police Force after the U.S. Attorney for the Southern District of New York gave the Bahamian authorities access to a sealed indictment. His charges include wire fraud, securities fraud conspiracy and money laundering. Tuesday, the U.S. Securities and Exchange Commission charged Bankman-Fried with defrauding investors.
The Bahamas is expecting to receive an extradition request from the U.S., which they tend to process “promptly.” Aside from the United States filing charges against Bankman-Fried, the Bahamas tends to continue its own investigation into FTX’s practices, which could result in a separate indictment.
In November, FTX filed for bankruptcy, leaving thousands of investors at risk of losing money, including employees who’d invested in the crypto giant. Bankman-Fried’s net worth plunged from $16 billion to almost zero. He told New York Times columnist Andrew Ross Sorkin shortly after the bankruptcy filing that he had approximately $100,000 left in his bank account. Days after, a class-action lawsuit was filed in a Florida federal court, accusing Bankman-Fried of preying on amateur crypto investors and recruiting big names such as Steph Curry, Shaquille O’Neal, and Naomi Osaka to promote his exchange.
Monday’s arrest marks the first stemming from the company’s failure, though criminal charges against other major players in the organization have not been ruled out.
Discover more from Baller Alert
Subscribe to get the latest posts sent to your email.
