Sam Bankman-Fried was arrested by police in the Bahamas. He is the founder of the bankrupt crypto company FTX.
According to the country’s attorney general, the US sent the Bahamas a formal notice that criminal charges had been filed against him in the USA. It was probable that there would be an extradition request.
FTX, the second-largest cryptocurrency exchange in the world, filed bankruptcy protection last month in the US. Bankman–Fried resigned his position as chief executive. This triggered a wave public demand for more regulation of the cryptocurrency market.
As traders raced to withdraw $6 billion (PS4.89bn), from the platform, the distressed crypto trading platform was unable to raise funds to avert collapse.
His platform was used by more than one million people worldwide to purchase assets such as Bitcoin.
Bankman-Fried, also known as “SBF”, was one of the most prominent names in crypto. His company intervened to save smaller companies after they had been tipped into insolvency.
In just three days, a string of bombshell claims led to the collapse of FTX as well as a bankruptcy.
A spokesperson for the US Attorney’s Office in Manhattan, New York confirmed that Bankman-Fried was arrested in the Bahamas, but declined to discuss the details.
According to Reuters, Bankman-Fried stated in a draft his testimony that he regretted “giving in to pressure” and signing the bankruptcy filing forms.
Reuters also reports that John Ray received a possible funding offer of billions of dollars less than ten minutes after signing a document naming him successor to the CEO position.
FTX was created to enable people to purchase cryptocurrencies using their dollars and pounds. It was highly praised for its user-friendly interface. However, it made money by charging small fees per transaction.
Bankman-Fried admitted risk in a series interviews and public appearances that he did in December and November.
Management failures, but not fraud accusations.
SBF was a well-known and unusual figure, known for his long hair and t-shirts. He was seen on
Panels with celebrities such as the former US President Bill Clinton or former British Prime Minister Tony Blair
Well as supermodel Gisele Bundchen.
He donated $5.2 million (PS4.23m), to President Joe Biden’s 2020 campaign, and was one of the biggest donors to Democratic candidates.
On Tuesday, he will appear before a Bahamas magistrates’ court.