The former founder and CEO of cryptocurrency exchange FTX has been arrested in the Bahamas. This arrest of Sam Bankman Fried came on criminal charges from US prosecutors.
FTX CEO faces extradition to US
Sam Bankman Fried, the CEO of bankrupt cryptocurrency exchange FTX, has been arrested in the Bahamas.
This arrest took place precisely in his apartment complex located in Albany in a seaside resort. At least that’s what an official statement from the Bahamian government said.
According to the news about crypto currency newsthe arrest of the ex-CEO of FTX was carried out in accordance with the official instructions issued by the American prosecutors who issued the arrest warrant.
Following this arrest and taking into account the extradition agreement that exists between the USA and the Bahamas, the United States may request the extradition of Sam Bankman Fried.
However, it should be noted that this extradition could take longer than expected. And for good reason, the processing of an extradition request is a complex procedure.
Also, the USA demands that he be extradited as soon as possible to answer for his actions before the competent courts.
However, if the extradition procedure follows its normal course, the ex-CEO of FTX can attempt a legal remedy to challenge his extradition. This could further slow down the process.
As a reminder, Sam Bankman-Fried is expected to testify soon before the US Congress. This, as part of a legal investigation into his involvement in the bankruptcy of the FTX cryptocurrency exchange.
According to the indictment, under the leadership of Sam Bankman Fried, FTX suffered a loss of US$8 billion in 2022. Client funds vanished and Fried is accused of embezzlement among other things.
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What we blame Sam Bankman Fried for
The fall of FTX caused enormous damage to the cryptocurrency market. The main responsible for the fall of FTX is designated. This is its founder and former chief executive Sam Bankman Fried.
Today, he is no longer free to move because he was arrested in the Bahamas in his apartments located on a seaside resort. Several charges are against the ex-CEO of FTX. Thus, he is accused of wire fraud and complicity in wire fraud.
Similarly, Sam Bankman Fried is charged with securities fraud and aiding and abetting securities fraud. The final charge relates to money laundering and embezzlement.
In total, five counts are brought against the former CEO of FTX whose extradition is in progress. All of these charges have been confirmed by prosecutors for the Southern District of New York.
But long before his arrest, the Securities and Exchange Commission had already charged Sam Bankman Fried with violating US securities laws. Also, he will probably have to answer for his actions before this commission.
Admittedly, on the indictment, only the name of Sam Bankman Fried is mentioned. However, other names may be added as the investigation continues.
Among the personalities likely to be involved in this scandal, there is in particular Caroline Ellison who is the former CEO of the company Alameda Research.
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