The founder of cryptocurrency exchange FTX, Sam Bankman-Fried, was arrested in the Bahamas on Monday following an indictment from the United States Attorney for the Southern District of New York.
The indictment is expected to charge Bankman-Fried with wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering. This is the first concrete action taken by regulators in relation to the collapse of FTX last month. In all, the defamed crypto founder could face up to 115 years in prison if convicted of all the current charges against him…
Additionally, the Securities and Exchange Commission (SEC) filed a complaint against ex-FTX CEO Bankman-Fried on Tuesday, alleging that he engaged in a “scheme to defraud equity investors” in FTX. The filing stated that Bankman-Fried raised more than $1.8 billion from investors without disclosing that he was using the funds to enrich himself and grow his crypto empire.
Bahamas Attorney General Ryan Pinder said that the United States is “likely to request his extradition,” and the Royal Bahamas Police Force confirmed that he has been arrested and will appear in court in Nassau.
In November, FTX and its affiliates filed for bankruptcy and Bankman-Fried resigned as CEO. The crypto trading firm collapsed following a run on assets similar to a bank run.
FTX’s collapse was sparked by reports on the company’s highly concentrated position in self-issued FTT coins, which Bankman-Fried’s hedge fund Alameda Research used as collateral for billions in crypto loans.
Binance, a competing exchange, announced its intention to sell its stake in FTT, leading to a large withdrawal of funds. FTX then froze assets and declared bankruptcy.
Subsequent reports suggested that FTX had mixed customer funds with Bankman-Fried’s crypto hedge fund, Alameda Research, resulting in the loss of billions in customer deposits.
If the federal government charges Bankman-Fried with wire or bank fraud, legal experts believe he could face a life sentence without the possibility of supervised release. This punishment would be unusual but not unprecedented; Ponzi scheme mastermind Bernie Madoff was sentenced to 150 years in prison.
Legendary “Bitcoin Whale” Issues Urgent Message for Wednesday, December 28th…
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Did We Hit the Bottom for Bitcoin?
If so, you’re going to want to Circle Your Calendar for December 28th…
If you’ve never heard Charlie Shrem’s story before… it’s like a work of Hollywood fiction.
Literally!
His story is the subject of a New York Times bestseller, Bitcoin Billionaires, and he just wrapped up filming the movie version of the book.
But this urgent message isn’t about movies or Hollywood.
It’s about YOU.
You see, Charlie became one of bitcoin’s original millionaires because he’s one of the most connected insiders you’ll ever meet…
He was one of the first people ever to read the groundbreaking “bitcoin white paper” after meeting Satoshi Nakamoto in an online chat room back in 2011.
It’s hard to imagine, but since then he’s become even more famous for sharing all his insights for free on social media.
Like when Charlie “Tweeted” buy recommendations for:
- Ethereum before it shot up 4,400%…
- Binance Coin before it skyrocketed 8,020%…
- Cardano before it soared 2,066%…
- IOTA before it rose 589%…
- Monero for an 896% gain…
- And many, many other HUGE winners.
But it soon became apparent that social media wasn’t the most optimal place to record his new predictions.
Which is why Charlie created the ultimate crypto investing resource detailing his team’s new crypto forecasts – all in one easy-to-read place…
It’s called the “Crypto Cash Calendar,” and it alerts readers to when MAJOR crypto catalysts are coming… WEEKS before they happen…
And his next big prediction is set for December 28th. You won’t want to miss out.
And don’t forget to mark your calendar for Wednesday, December 28th.
If you think the “bottom is in” for cryptos, follow this link. It could be the most lucrative information you’ve ever seen.
