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Sam Bankman-Fried Arrested in Bahamas After US Authorities Announce Criminal Charges

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SBF behind bars

The South District of New York Attorney's office has announced criminal charges against Sam Bankman-Fried for abusing his role as CEO in the FTX collapse.

US authorities are probing Bankman-Fried's cash flows to the Bahamas on the day of its bankruptcy, according to Bloomberg.

 

 

At the request of US officials, Bankman-Fried was arrested by Bahamian law enforcement and will soon be extradited to the US.

Bahamian government statement about arresting SBF
Official Bahamian government statement on SBF arrest

 

US Justice Department officials are also conducting a broad investigation into how FTX handled its assets and customer funds. The New York Times reported earlier this week that federal prosecutors are also looking into whether Bankman-Fried made illegal trades which helped lead to the collapse of Terra in the spring.

Carolina Ellison, the ex-CEO of Alameda Research, was recently spotted in a coffee shop near the South District of New York's FBI Office, so speculation has risen that she is cooperating with law enforcement.

 

 

Given this, it is now possible that Ellison will turn on Bankman-Fried, thus providing herself a lighter sentence and far less accountability for the FTX-Alameda fraud.

As I previously reported, SBF stated he would not be ready to testify at the House Financial Committee hearing tomorrow, and the news of his arrest confirms that.

A Fox report indicates that SBF could be potentially spend the rest of his life in prison.

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