Former FTX boss Sam Bankman-Fried arrested in the Bahamas

The deposed boss of the cryptocurrency platform, the young man is threatened with criminal charges for his role in the company’s spectacular collapse.

Sam Bankman-Fried, the fallen cryptocurrency star and former boss of the FTX platform, was arrested in the Bahamas on Monday, December 12 at the request of US authorities, Damian Williams, a New York prosecutor, announced. “We will provide more information about the charges” He clarified in his tweet on Tuesday morning. “SBF” will appear before a court in the capital Nassau on Tuesday.

The United States has “complained” by the thirties and “probably will ask for his extradition”Bahamas Attorney General Ryan Pinder said in a statement on Twitter. The two countries “have an interest in apprehending responsible individuals in connection with FTX who may have violated public trust and violated the law”said Philip Davis, the prime minister of the kingdom, an archipelago northeast of Cuba. The Bahamas will conduct its own “criminal investigation into the collapse of FTX,” he added, quoted in the statement.

The collapse of the FTX group appears to be the result of the absolute concentration of control in the hands of a very small group of extremely inexperienced and unsophisticated individuals. »

John Ray, new boss of FTX

“SBF” had been in the media for a month, despite the risk of a fraud lawsuit following the spectacular implosion of the company, which was valued at $32 billion early this year. He was due to speak to a House of Representatives parliamentary committee on Tuesday, as was FTX’s new boss, John Ray. The ex-leaders of the bankrupt platform have a “total failure” at all levels of control, spending without actually counting their customers’ money, said this last Monday in a document published in Congress on the eve of the hearing.

At first sight, “The collapse of the FTX group appears to be the result of the absolute concentration of control in the hands of a very small group of very inexperienced and inexperienced individuals, who have not implemented any of the systems or controls necessary for a company in which other people’s money or possessions are entrusted’, underlined John Ray. Considered one of the world’s leading cryptocurrency exchanges, in early November, FTX was suddenly unable to return the funds they had deposited there to its customers. The group announced its bankruptcy filing on November 11.

“Expenditure Spree”

“I have never tried to scam anyone”assured Sam Bankman-Fried at the end of November at a conference organized by the New York Times. “Obviously I made a lot of mistakes and I would give anything to be able to do some things again.” The former muse of cryptos has chosen to multiply interviews and speeches on Twitter despite the seriousness of the allegations against him. He was a graduate of the Massachusetts Institute of Technology and the son of law professors at Stanford University. He had succeeded in legitimizing cryptocurrencies to the general public and political class. But his contrite attitude and hesitant tone during his recent speeches contrast starkly with the reassuring image he has forced upon himself in recent years.

The investigation has already revealed that the assets deposited by clients on FTX were mixed with those of the brokerage and crypto investment firm Alameda, also founded by Sam Bankman-Fried. And Alameda gleefully dipped into FTX client funds to make risky bets. Such use of these funds would be fraud if it violated the terms of the agreement between FTX and its clients, many lawyers believe.

FTX has also started one “expenses” by the end of 2021 with $5 billion in businesses and investments “which may only be worth one serving” of that, according to John Ray. The platform has also disbursed more than $1 billion, in the form of loans or payments, to people within the company. For the new leader, who has supervised several bankruptcy proceedings, including that of former US energy giant Enron, the goal is now to “maximize value” assets still held by FTX to repay the group’s customers and creditors as much as possible.

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