After weeks of the collapse of the exchange FTXhis founder Sam Bankman-Fried was arrested in Bahamas accused of fraud with his company cryptocurrencies.
Bankman-Fried was arrested in the Caribbean country following local authorities received an official notification from the United States stating that “there were criminal charges once morest him.”
The “wonder boy” is arrested
Bankman-Fried took refuge in Bahamas following their exchange of cryptocurrencies will collapse by not having the necessary liquidity for its users.
“As a result of the information received and the material that came with it, it was considered appropriate for the Attorney General to request his arrest and keep him in the custody of our country’s Extradition Law,” said the nation’s Attorney General’s Office.
Although the charges for which Bankman-Fried is accused were not explained, the United States Securities and Exchange Commission (SEC) has indicated that “the wonder boy” defrauded thousands of investors in his company out of 1.8 billion dollars .
For SEC Chairman Gary Gensler, “Sam Bankman-Fried built a house of cards on a hoax while telling investors it was one of the safest buildings in the crypto industry.”
The fall of FTX
FTX was a cryptocurrency lending, investment, and exchange house that was commanded by Bankman-Fried.
However, his mismanagement caused an imbalance that ended up leading the company to bankruptcy. Even its biggest rival, Binance, desisted from buying the company following discovering embezzlement in internal coffers.
The former CEO of the company was accused of create a back door in the accounting system so you can withdraw money without suspicion and send it to multiple companies you own. Until before the event, Bankman-Fried was considered a young promise in the cryptographic industry. The day it all blew up, he lost 90% of his fortune.
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