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FTX co-founder, Sam Bankman-Friedarrived on Wednesday at USA in FBI custody following his extradition from the Bahamas on fraud charges linked to the collapse of the cryptocurrency exchange, US media reported.
Your virtual currency exchange company and sister trading house, Alameda Researchwere declared last month in bankruptcycollapsing a business that had been valued by the market in 32,000 million dollars.
SIGHT: What are they accusing Sam Bankman-Fried of, the billionaire behind the crash of cryptocurrencies who was captured in the Bahamas
Federal prosecutors in New York charged the 30-year-old businessman, a one-time cryptocurrency wunderkind, with misleading investors and abusing client funds from FTX and Alameda Research.
US federal attorney damian williams had announced on Wednesday night that the fbi already had him in custody and would transport him “directly to the Southern District of New York.”
The plane where he was traveling landed on Wednesday nightindicated the US media.
Previously, in Bahamas, FTX headquartersForeign Minister Frederick Mitchell had signed a delivery order of Bankman-Fried to the United States under a bilateral extradition treaty.
The businessman had waived his right to challenge the extraditionas indicated by the attorney general, Ryan Piner.
The decision came nine days after he was arrested at his luxurious apartment in Nassau at the request of the United States.
The federal prosecutors of NY then announced that They accused the businessman of an indictment of eight counts, including conspiracy, wire fraud, money laundering and violations of the electoral financing law.
Bankman-Fried “was orchestrating massive fraud for years, siphoning off billions of dollars of client funds trading platform for your own personal benefit and to help grow their crypto empire,” they said.
Five of the eight crimes charged to Bankman-Fried carry a maximum of 20 years in prison each.
The US securities market regulator, the secaccused him in turn of violating security laws.
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The prosecutor william indicated that two key figures in this case — the executive director of Alameda ResearchCaroline Ellison, and co-founder of FTXGary Wang– have pleaded guilty to their charges and are cooperating with authorities.
The charges were “connected to his roles in frauds that contributed to the collapse of FTX”, he said without elaborating.
In parallel, the SEC and the Futures Trading Commission (CFTC) announced on Wednesday the filing of civil lawsuits against Ellison and Wong and assured that they were also cooperating with them.
The CFTC estimates that $8 billion of client funds were misappropriated by FTX.
After its foundation in 2019, FTX it emerged as a key player in the world of cryptocurrencies.
Bankman-Fried he was gracing the covers of finance and technology magazines and receiving huge investments from major shareholders and fund managers.
He also rubbed shoulders with politicians, becoming a spokesman for the industry on regulatory issues in Washington and contributing tens of millions of dollars to Republican and Democratic campaigns.
But everything imploded in November when an article indicated that Alameda’s balance sheets were supported mainly by a cryptocurrency created by FTXwhich had no independent value.
Source: Elcomercio
I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.
