The disgraced former CEO of FTX Sam Bankman-Fried has been arrested within the Bahamas, in line with a press release from the Royal Bahamian Police.
Bankman-Fried, often known as SBF, was arrested after “receiving formal discover from the USA that it’s prone to file prison expenses towards SBF and demand his extradition,” the assertion mentioned. learn.
The US Lawyer’s Workplace for the Southern District of New York confirmed the request in a press release by way of Twitter.
USA Damian Williams: Earlier this night, Bahamian authorities arrested Samuel Bankman-Fried on the request of the US authorities primarily based on a sealed indictment filed by SDNY. We plan to open the indictment within the morning, and we could have way more to say at the moment.
— U.S. Lawyer SDNY (@SDNYnews) December 12, 2022
“Earlier this night, Bahamian authorities arrested Samuel Bankman-Freed on the request of the U.S. authorities primarily based on a sealed indictment filed by SDNY,” it mentioned. “We plan to open the indictment within the morning, and we’ll have much more to say at that time.”
Bahamian police confirmed in a press release shared Decryption Legislation enforcement arrested Bankman-Fried at 6 p.m. with out incident at an Albany condo complicated. SBF’s arrest was the results of “varied monetary violations of U.S. regulation which are additionally violations of Bahamian federal regulation,” the assertion learn.
Bankman-Fried agreed to testify earlier than the Home Monetary Providers Committee, however was because of communicate to lawmakers in Washington, D.C. tomorrow concerning the collapse of the digital asset alternate after declining an invite from the Senate.
It isn’t but recognized what expenses US authorities plan to carry towards Bankman-Fried, however authorized specialists say: Decryption It may very well be a mix of financial institution fraud and wire fraud. The Bahamas has an extradition treaty with the USA.
FTX went bankrupt final month after it allegedly combined funds from the alternate with an alternate, Alameda Analysis (additionally based by SBF).
When customers of the alternate realized the mismanagement, they tried to withdraw funds from FTX, which led to a financial institution crackdown on the alternate. FTX was then pressured to confess that it didn’t maintain his 1:1 reserve of consumer property and later filed for chapter.
The corporate’s new CEO, John J. Ray III, a seasoned chapter legal professional who helped with the Enron meltdown, mentioned right now that FTX’s collapse was “a really small variety of very inexperienced and unsophisticated people. mentioned to have been attributable to a gaggle of
The feedback got here within the type of a ready testimony that Ray plans to file with the Home Monetary Providers Committee tomorrow morning. It describes precisely what occurred. This contains the commingling of funds, the shortage of dependable monetary statements, and the usage of “laptop infrastructure” to permit senior firm personnel entry to clients. property.
Based on Ray, Alameda additionally had the unbridled potential to borrow cash on FTX and use it for its personal functions.
Editor’s Be aware: This text was up to date after publication to incorporate particulars concerning the arrest of Sam Bankman-Fried.