December 14, 2022

FTX Former CEO SBF Arrested in Bahamas

Former FTX CEO

Former FTX CEO

Sam Bankman-Fried (SBF), the former founder of the collapsed FTX, was arrested in the Bahamas at the request of the US government. SBF, 30, faces criminal charges related to the bankruptcy of the crypto platform in November.

The announcement was made by Bahamian attorney-general Ryan Pinder, who said SBF is remanded in custody and likely to face extradition from the US.

Meanwhile, US Attorney for the Southern District of New York Damian Williams confirmed the detention in a tweet, saying: “Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. Government, based on a sealed indictment filed by the SDNY. We expect to move to unseal the indictment in the morning and will have more to say at that time.”

The US Securities and Exchange Commission filed on Tuesday a civil complaint against SBF that he was involved in a “scheme to defraud equity investors in FTX.” According to the filing, the former CEO of FTX raised $1.8 billion from investors as he diverted billions of dollars of the trading platform’s customer funds for his own personal benefit and to help grow his crypto empire.

According to the New York Times, SBF faces charges of money laundering, wire fraud, wire fraud conspiracy, securities fraud, and securities fraud conspiracy.

Earlier, a document, which was a part of FTX’s filing process to the United States bankruptcy court for the district of Delaware, revealed that FTX Trading LTD owes more than $3 billion to its top 50 creditors.

According to the document, FTX owes more than $226 million to its top creditor, while other sums of money are ranging between $21 million and $203 million.

Information about the identity of the creditors, or their addresses, telephone numbers, or e-mail addresses is unknown. Investigations are underway to get any of this information.

FTX, once valued at $32 billion, collapsed in a matter of days after the CEO of Binance, a rival firm, said his exchange would liquidate its FTT tokens, a matter that led to the plunge of FTT value. FTX filed for Chapter 11 bankruptcy on November 11.

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