Sam Bankman-Fried (SBB), the former head of cryptocurrency platform FTX, was arrested in the Bahamas early last week. Local authorities have decided to extradite him to the United States where he will face numerous charges.
stopped by the Royal Bahamian PoliceSam Bankman-Fried initially denied the charges against him and wanted to oppose his extradition. But he ended up abandoning this project to resist his extradition which will take place this Wednesday.
30-year-old former boss of FTX, now bankrupt, had been living in the Bahamas for weeks. US authorities accuse him of orchestrating “one of the largest financial frauds in US history”.
Back to the US for SBF
Since when his arrest in the Bahamas on December 12, many people are relieved that SBF will finally be held accountable. His extradition to the United States will finally allow for more answers on FTX’s bankruptcy.
Doan Cleare, the interim corrections commissioner for the Bahamas, told NBC News Bankman-Fried is on his way to the United States. She is currently in Fox Hill Jail in the Bahamas and is scheduled to board her flight this Wednesday. Doan Cleare further points out that SBF ended up being cooperative by signing the documents relating to its extradition proceedings. He had in fact renounced the right to be extradited to the United States.
Plus, Doan Cleare reports it Sam Bankman-Fried initially refused to be extradited and subsequently flipped. Although the reasons for this change of position are not disclosed, it is clear that if SBF had not been cooperative, it could have been fighting this extradition procedure for years.
Jerone Roberts, the lawyer representing SBF, he also added that his client had voluntarily agreed to his extradition. He will be escorted this Wednesday by FBI agents on a non-commercial aircraft.
SBF had requested a request for release on bail on December 13, the day after his arrest. But he had been turned down by a Bahamian judge who qualified the former FTX chief as presenting a flight risk.
The former billionaire faces a series of allegations from several US government agencies, including theand Ministry of Justicethe Securities and Exchange Commission and the Commodity Futures Trading Commission.
Many allegations against SBF
The lawsuit against SBF reveals the flip side of the FTX affair. This tells us that the cryptocurrency exchange platform owes nearly $3.1 billion to its 50 largest creditors. SBF is then accused of using these funds for Alameda Research, its investment trading firm.
The former head of FTX is also accused of using tens of millions of dollars from the platform. According to Damian Williams, United States Attorney for the Southern District of New Yorkthis money would be used to illegally contribute to the campaigns of elected Democrats and Americans.
Also, the Securities and Exchange Commission (SEC) accuses SBF of deception. But the latter denies all his allegations of deception and fraud. In an interview with BBC News, the one who was once dubbed the “King Of Crypto” said:
“I didn’t do it knowingly fraud. I don’t think I committed any fraud. I didn’t want any of this to happen. I was certainly not as competent as I thought.
Before its bankruptcy, FTX it had nearly 1.2 million users, making it one of the largest cryptocurrency exchanges. Many of these users remain unanswered and wonder if they will be able to recoup their investment stuck on FTX.
Placed in liquidation, FTX is subject to a SEC forensic investigation and the New York Department of Justice. According to some reports, the platform currently only has $1.2 billion in cash on the $3 billion it owes its creditors. In Florida, a lawsuit has been filed against FTX and the celebrities who promoted it.
Towards better regulation of the cryptocurrency market?
The bankruptcy of FTX it has rocked the cryptocurrency market and exposed the risks of centralized platforms. Political leaders and authorities in several countries have taken this opportunity to call for stricter oversight of the cryptocurrency industry.
FTX has hurt many cryptocurrency users and its failure is already called the biggest fraud in the history of cryptocurrencies. United States. To prevent such disasters from happening, industry players are calling for more regulation.
We recall that theEuropean UnionThis year we took the lead with the Cryptocurrency Markets Regulation (MiCA), which establishes a legal framework for the market. But the rest of the world is struggling to follow in the footsteps of the EU and legislate for better control of cryptocurrencies.
