James Atkins
Editor
Editor
Here are some key points:
The Bahamas police force arrested Sam Bankman-Fried, the founder of FTX, on Monday after the US filed criminal charges against him. The Bahamas expect that the US will also request extradition imminently.
“Based on the notification we received and the accompanying evidence, it was decided that the Attorney General should request SBF’s arrest and detain him under our nation’s Extradition Act,” the statement, attributed to Attorney General Ryan Pinder, states.
If convicted, Bankman-Fried could be facing years behind bars on charges of cyber fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering.
What next?
The charges against Bankman-Fried reveal that he was involved in a lot of different activities. He was supposed to testify before the House Financial Services Committee today about the FTX crash. But now he will appear in Magistrate Court in Nassau, Bahamas instead.
Once Bankman-Fried comes back to America, there will not be a trial right away. This is a very big crime and it happened in many different places. It will take a long time to fix, the SEC also says that Bankman-Freid tricked people who gave him money.
We believe Sam Bankman-Fried misled investors by making false claims about the stability of his cryptocurrency company. states SEC Chair Gary Gensler.
“The purported fraud committed by Mr Bankman-Fried is an admonition to crypto platforms that they must obey our laws.”
The question is what will happen to Alameda CEO Caroline Ellison? Alameda is a trading firm also started by Bankman-Fried. People’s money from FTX was sent there to cover up big trading losses.
People thought that Ellison was in Hong Kong when the arrest happened. But someone saw her at a café in Manhattan. This means that she is already in the United States.
This has led many people to believe that a plea deal had been reached, although no one knows for sure. Bankman-Fried has claimed multiple times that he wasn’t responsible for everything that happened and didn’t have knowledge of Alameda’s position.
Only time will tell what Ellison’s future holds. But it seems scarcely credible that Bankman-Fried and Ellison, were both unaware of the goings-on at their companies; considering the size of the damage – $8 billion. And let’s not forget that they were both CEOs of those entities.
To say it nicely, Trabucco’s timing was not great when he announced his retirement from Alameda. This was only 3 months before the company collapsed and Ellison became the only CEO.
In a lengthy tweet, he said that the reason for his resignation was an increase in work hours and changing priorities.
“I want something different now. I don’t know exactly what that is yet. I’ve been happy lately, travelling, visiting friends and family, and working on myself. I also bought a boat, which has been cool.”
Trabucco resigned three months after the collapse. He was the CEO and should have known what was happening, but he is not receiving much criticism. He has not tweeted since November 8th, when he said that he hopes the “road ahead is brighter.”
It was also revealed that he bought two properties worth $8.7 million last year using all cash. This is in addition to the yacht purchase mentioned above, which he reportedly hired a freelancer on Fiverr; to design the logo for (he named it “Soak my Deck”).
Bankman-Fried’s trial probably won’t start for a long time. It will take years to finish. As for the other two people, we don’t know what will happen, but we would be surprised if they don’t get arrested soon. What a shame for the industry as a whole!
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
