Arrest of Former FTX CEO Sam Bankman Fried! Crypto is currently seeing an increase in activity and interest, one of the biggest news is the arrest of Sam Bankman-Fried in the Bahamas on Monday.
The specific charges against Bankman-Fried are not being disclosed at this time since the case has been closed and neither US prosecutors nor Bahamian prosecutors have commented on the situation. However, according to The New York Times, Sam Bankman Fried was charged with wire fraud, securities fraud and embezzlement.
Legal drama
Authorities have taken the first big step to arrest people for the multi-billion dollar FTX disaster a month ago by arresting the CEO. The SBF has been ordered to be removed, according to a statement issued Monday (December 12) by Ryan Pinder, Attorney General of the Bahamas. Federal prosecutors in Manhattan are expected to drop the case against SBF on Tuesday and provide more information, said US Attorney for the Southern District of New York Damian Williams.
The New York Times reported that US authorities have accused SBF of fraud. The United States Securities and Exchange Commission (SEC) has authorized civil action against Sam Bankman Fried for violating securities laws and money laundering. Bahamian Prime Minister Philip Davis responded to the report by saying that the two countries have “a common interest in holding accountable anyone involved in FTX who may undermine public trust and violate the law.”
Will this change the Sam Bankman Fried audience?
House Financial Services Committee chair Maxine Waters said that the panel is still open to hold an ear in the recent failure of FTX, a cryptocurrency exchange. He stressed the need for Americans to understand the circumstances surrounding the company’s failure.
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The FTX founder reportedly tried to avoid or delay the hearing by saying he didn’t have all the necessary information about the meltdown. In response, Waters threatened to issue a subpoena to compel the developer to attend the hearing.
Why hold SBF?
Millions of people have been affected by the bad decision of the Sam Bankman Fried and it is their right to know the details. This is why a public hearing is needed according to the legislator. Because of its influence, SBF has donated millions to political parties and campaigns. Additionally, he is being hailed as the company’s new poster child. In the past, he supported crypto-friendly FTX rules.
Several members of Congress, including New Jersey Democrat Josh Gottheimer and New York Democrat Ritchie Torres, accepted campaign contributions from FTX or Sam Bankman Fried, although Bankman-Fried stayed at his home in Nassau. Ray will be making his first appearance since the FTX debacle.
The restructuring expert was best known for repairing the damage at Enron for nearly 20 years before joining FTX. According to court documents, Ray claims that FTX’s financial condition was worse than Enron’s and that he did not trust the company’s financial statements before starting work.
FTX CEO John J. Ray says
John J. Ray III, who is responsible for revamping the original cryptocurrency exchange FTX, told the legislators that the failed company was due to mistakes made by the original management. FTX’s new CEO released his prepared statement before a congressional hearing on the matter, while FTX founder Sam Bankman-Fried confirmed he would testify.
Also? Experts told CNBC that if Bankman-Fried is convicted of the charges, she could spend decades in prison. However, before he goes to jail, US authorities will want to ensure that he can be extradited from the Bahamas to New York. The legal drama between Sam Bankman Fried and FTX has many moving parts, and it will be interesting to learn all the details as they unfold. The outcome of this situation is unknown at this time.
