FTX Crash- Major Player SBF Under Bahamas Custody

Former FTX CEO and co-founder Sam Bankman-Fried was arrested Yesterday.
FTX’s SBF was testified as a witness in the U.S. House of Representative.
New CEO John Ray III explains the difficulties at organization.

‘Halt of Fame’

FTX former CEO and co-founder Sam Bankman-Fried was arrested in the Bahamas by the Royal Bahamas Police Force on Monday, December 12 at 6:00 p.m. at his apartment complex, located Albany, Nassau Bahamas.

According to BBC, the US Attorney Damian Williams stated, that “Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the US Government, based on a sealed indictment filed by the SDNY [Southern District of New York]. We expect to move to unseal the indictment in the morning and will have more to say at that time.”

Earlier this week, FTX’s broke CEO SBF was scheduled to testify as a witness in front of the U.S. House of Representative Committee on Financial Services. He was arrested after the U.S. prosecutors filed criminal charges in his name. The FTX’s SBF is now facing charges against securities fraud, money laundering, securities fraud conspiracy, wire fraud conspiracy and wire fraud.

On SBF’s arrest, the U.S. Congresswoman Maxine Waters (D-CA), Chairman of the House Financial Services Committee, said that “I am surprised to hear that Mr. Sam Bankman-Fried was arrested in the Bahamas at the direction of the United States Attorney for the Southern District of New York,” she added “the public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity.”

FTX CEO Denies

In a Dealbook Summit reported by New York Times held on December 1, SBF said that he “didn’t knowingly commingle” FTX customer funds with the trading desk, Alameda Research. He also clearly denied all allegations imposed on him, stating that “I didn’t not ever try to commit fraud on anyone.”

Now-bust crypto empire FTX which succeeded merely in 3 years with a valuation of $32 billion just before filing for bankruptcy under Chapter 11 on November 11, 2022. Its former CEO SBF resigned from his position after the crypto exchange went “bank run.” Further, SBF was indulged excessively in political campaigns, and the filing shows that he has spent almost $40 million.

Strict Action

As per the media reports, US Securities and Exchange Commission (SEC) official Gurbir Grewal’s statement was, that “We commend our law enforcement partners for working to secure the arrest of Mr Sam Bankman-Fried in the Bahamas on federal criminal charges.”

After SBF stepped down as CEO, John Ray III is now the new CEO of FTX, he said in an affidavit presented to the U.S. Bankruptcy Court of Delaware, that “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing