Before the abrupt demise of the company, Bankman-Fried was one of the most recognizable names in the crypto industry. Tuesday, he will appear in a Bahamas magistrates court.
Sam Bankman-Fried, the founder of bankrupt crypto company FTX, has been arrested by police in the Bahamas.
The country’s attorney general stated that the US had formally notified the Bahamas that criminal charges had been brought against him, and it was likely that he would be extradited.
The second-largest cryptocurrency exchange in the world, FTX, filed for bankruptcy protection in the United States last month, and its CEO, Bankman-Fried, resigned, sparking a surge of public demands for stronger regulation of the cryptocurrency business.
As traders hurried to withdraw $6bn (£4.89bn) from the site in just 72 hours, the struggling crypto trading platform struggled to gather funds to fend off collapse.
More than one million clients utilized his website to purchase Bitcoin and other assets.
Bankman-Fried – also known as “SBF” – had become one of the most recognizable names in the cryptocurrency business, with his organization rushing in to save smaller firms that were on the verge of bankruptcy.
Three days later, a series of bombshell charges precipitated the stunning fall of FTX and its bankruptcy.
A representative of the US Attorney’s office in Manhattan, New York, confirmed Bankman-detention Fried’s in the Bahamas but declined to comment on the charges.
The news agency Reuters reports that in a draught of his testimony, Bankman-Fried states that he “truly regrets giving in to pressure” to sign the bankruptcy file documents.
Reuters also states that “less than ten minutes after signing a contract naming [his successor] John Ray as CEO, he received a potential billion-dollar investment deal”
FTX was created to facilitate the purchase of cryptocurrencies with pounds and dollars. It was hailed for its user-friendly interface and made money by collecting tiny transaction fees.
In a series of interviews and public appearances at the end of November and the beginning of December, Bankman-Fried admitted risk management problems but rejected fraud allegations.
His crazy hair, t-shirts, and shorts helped “SBF” become a prominent and eccentric personality. In addition to supermodel Gisele Bundchen, he participated on panels with celebrity statesmen such as former US President Bill Clinton and former British Prime Minister Tony Blair.
He contributed $5,2 million (£4.23 million) to the 2020 presidential campaign of Vice President Joe Biden and became one of the greatest donors to Democratic contenders.
Tuesday, he will appear in a Bahamas magistrates court.
