Sam Bankman Fried, who was recently enjoying his time in the Bahamas after defrauding millions of FTX users, has been arrested. Well, it doesn’t take much time for your life to change when you go from a billionaire to a con artist within a month, and then, while giving interviews, you play video games on the call.
SBF has been arrested. pic.twitter.com/6wsLVcdF5K
— Genevieve Roch-Decter, CFA (@GRDecter) December 12, 2022
SBF was resting easily in the Bahamas, as he might have assumed that he won’t be detained this way. But after the US notified the Bahamas that SBF had criminal charges against him and he needed to be extradited, the Bahamas authorities arrested him. Damian Williams, a US attorney, confirmed all the details of SBF’s arrest.
The biggest reason for Sam’s arrest was how they handled user funds. He confirmed in yesterday’s interview that during 2019-20 user funds were transferred to the Alameda research firm. That’s because FTX didn’t have a bank account at the time. However, even when FTX got their own accounts, the user funds were never really sent back to FTX.
Moreover, even though we picture that SBF was very down to earth, he has purchased properties worth millions of dollars for himself and his executives in the Bahamas and worldwide. The CEO, who was appointed after Sam stepped down, said that he had never seen such an utter and complete failure of corporate control.
The congress hearing
SBF was scheduled to step in front of congress for a hearing this week. But that might not be possible right now. However, we might soon see him in court once he gets extradited to the US.
The Chairwoman of the House Financial Services Committee, Maxine Waters, said, “While I am disappointed that we will not be able to hear from Mr Bankman-Fried tomorrow, we remain committed to getting to the bottom of what happened, and the Committee looks forward to beginning our investigation by hearing from Mr John Ray III tomorrow.”
John is the present CEO of FTX. He will need to answer a lot of questions regarding how user funds were swindled between insiders, Alameda research, 3rd parties and also used for margin trading.
SBF at flight risk
There has been a report that SBF is at flight risk. Unusual Whales shared the information about the same.
Bahamas prosecutor tells judge that SBF is a flight risk, per Reuters.
— unusual_whales (@unusual_whales) December 13, 2022
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