The ousted head of the cryptocurrency platform, the young man is facing criminal prosecution for his role in the company’s spectacular collapse.
Sam Bankman-Fried, the fallen cryptocurrency star and former head of the FTX platform, was arrested in the Bahamas on Monday, December 12 at the request of US authorities, announced Damian Williams, a New York prosecutor. “We want more information to provide about the accusation” Tuesday morning, he clarified in his tweet. “SBF” meets on Tuesday in a court in the capital Nassau.
The US has “complained” towards the thirties and “will likely seek his extradition”, Bahamas Attorney General Ryan Pinder said in a statement posted on Twitter. The two countries “has an interest in holding accountable persons associated with FTX who may have betrayed the public’s trust and broken the law”, said Philip Davis, prime minister of the kingdom, an archipelago located northeast of Cuba. The Bahamas will conduct its own “criminal investigation into the collapse of FTX,” he added, quoted in the statement.
The collapse of the FTX group appears to be the result of the absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals. »
John Ray, new head of FTX
“SBF” had appeared in the media for a month, despite the risk of a lawsuit for fraud after the spectacular implosion of the company, which was valued at 32 billion dollars at the start of the year. He was scheduled to address a House committee Tuesday along with John Ray, the new head of FTX. The former managers of the bankrupt platform have shown one “complete failure” at all levels of control, spending without really counting their customers’ money, said this last Monday in a document published on the eve of the hearing in Congress.
At first glance, “The collapse of the FTX group appears to be the result of the absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who have not implemented any of the systems or controls required of a business, where other people’s money or assets are entrusted’, John Ray emphasized. Considered one of the world’s leading cryptocurrency exchanges, FTX was suddenly unable to return the money they had deposited there to its customers in early November. The group announced its bankruptcy filing on November 11.
“I have never tried to cheat anyone”assured Sam Bankman-Fried at the end of November during a conference organized by New York Times. “I definitely made a lot of mistakes and I would give anything to be able to do some things again.” The former crypto muse has chosen to multiply interviews and talks on Twitter despite the seriousness of the accusations against him. As a graduate of the Massachusetts Institute of Technology, the son of law professors at Stanford University, he had managed to legitimize cryptocurrencies with the general public and the political class. But his contrite air and his hesitant tone during his recent speeches provide a striking contrast to the reassuring image he has created for himself in recent years.
The investigation has already shown that the assets deposited by customers on FTX were mixed with the brokerage and crypto-investment firm Alameda, also founded by Sam Bankman-Fried. And Alameda happily dipped into FTX client funds to make risky bets. Such use of these funds would constitute fraud if it violated the terms of the agreement between FTX and its clients, many lawyers believe.
FTX has also started one “the expenses” from the end of 2021, with 5 billion dollars in companies and investments “which may be worth only a portion” of it, according to John Ray. The platform has also disbursed, in loans or payments, more than a billion dollars meant for people in the company. For the new leader, who has overseen several bankruptcies, including the former US energy giant Enrons, the goal is now to “maximize value” assets that FTX still holds in order to repay the group’s customers and creditors as much as possible.
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