Last Updated on 2022-12-15 , 4:28 pm
The Humpty Dumpty of the crypto world has fallen.
I’m referring to none other than FTX’s mastermind Sam Bankman-Fried, who has recently been arrested in the Bahamas for his company’s catastrophe.
Advertisements
FTX’s Founder, Sam Bankman-Fried, Arrested After the US Files Criminal Charges Against Him
Since FTX’s implosion, the name has fizzed up everywhere.
Now, capping the series of events is his arrest.
FTX’s founder Sam Bankman-Fried was arrested by authorities in the Bahamas on Monday (12 December). This follows after the United States Attorney for the Southern District of New York filed criminal charges against him.
In a statement, Damian Williams, the attorney, said that the arrest was made at the request of the American government.
Bankman-Fried is expected to be extradited to the US for trial.
What does this mean?
Although he’s in the Bahamas now (and FTX’s headquarters are there), he’ll have to return to the US for his processing because his crime was committed there.
Since FTX’s collapse, Bankman-Fried has admitted to several managerial blunders but has clarified that the company’s implosion, or the violation of the law, was never part of his plan.
Advertisements
The ex-multibillionaire testified virtually before the House Financial Services Committee on Tuesday (13 December).
Like an unsharpened pencil, he said, “I would like to start by formally stating under oath: I f***** up.”
Join our Telegram channel for more entertaining and informative articles at https://t.me/goodyfeedsg or download the Goody Feed app here: https://goodyfeed.com/app/
Fall of FTX
Futures Exchange, better known as FTX, is a cryptocurrency exchange system promoting digital currency transactions.
Started by Sam Bankman-Fried in 2019, this platform initially saw hypergrowth. However, as it increased in popularity, it needed more to supply customer demand.
It was revealed to the public that Bankman-Fried had taken US$10 billion of FTX funds and pumped it into Alameda, and reports alleged that Alameda had loans amounting to US$7.4 billion.
Advertisements
For those who don’t know, Alameda is another company founded by Bankman-Fried.
Many were sceptical about the solvency of the company (the ability to meet long-term debts and financial obligations) and worried that they stood to lose all their money. As such, they withdrew from the market.
The mass market pullout meant that FTX had to return the users’ money to them. Unfortunately, they lacked assets in their reserve to meet the demand and were forced into filing for bankruptcy.
On 11 November 2022, Bankman-Fried stepped down as CEO of FTX, and FTX filed for Chapter 11 bankruptcy.
Read also:
- Another S’pore-based Tech Firm, Glints, Announced Layoffs
- Ice Magic Security Guard Reportedly Got Into Fight With Customer Over Fallen Wristband
- England Players Broke Their Promise of Adopting a Stray Cat in Qatar Only If They Won the World Cup
- Circuit Breaker in Bishan HDB Flat Suddenly Caught Fire Which Led to a Power Outage in 6 Floors
- 6 Commuters, Including a 3YO, Taken to a Hospital After 2 SBS Buses Collided
Featured Image: ABC News
Advertisements
These five GRCs could see the tightest battle in GE2025; here’s why:
Read Also:
- Trump Exempts Electronics from 125% China Tariffs, Sparing Smartphones and Computers
- Elderly Charity Shop Owner Baffled by Over 50 Boxes of Mystery Donation Blocking Store Entrance
- DNA from Two Men Discovered on Murdered Singaporean Woman’s Clothing as Court Orders Comparison with Main Suspect
- Former Police Officer Convicted in Fatal Maid Abuse Case That Left Victim Weighing Just 24kg
- Teen Arrested in Johor for Selling AI-Generated Fake Nudes of School Peers for RM2 Each
