FTX Founder Sam Bankman-Fried Arrested In Bahamas Before U.S. Hearing

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Sam Bankman-Fried – FTX founder’s hearing on Tuesday will not take place, according to Chairwoman Maxine Waters of the House Financial Services Committee

Sam Bankman-Fried (SBF) got arrested in the Bahamas a day before the disgraced FTX founder was supposed to appear before the US Congress. At the same time, the US filed for his criminal indictment.

Sam Bankman-Fried has been taken into custody while an extradition procedure is underway, according to a statement released on Monday, December 12 by Ryan Pinder, the attorney general of the Bahamas.

Federal prosecutors in Manhattan will unseal the case against SBF on Tuesday and disclose additional information, said Damian Williams, the US attorney for the Southern District of New York.

According to a New York Times story, SBF has been charged with wire fraud by U.S. authorities. Furthermore, the U.S. Securities and Exchange Commission (SEC) has approved civil lawsuits in connection with SBF’s alleged violations of securities laws and money laundering.

Bahamian Prime Minister Philip Davis responded to the news by stating that both countries have “a shared interest in holding accountable all individuals associated with FTX who may have breached the public trust and broken the law.”

FTX Founder Sam Bankman-Fried Arrested In Bahamas Before U.S. Hearing

Sam Bankman-Fried Hearing to Proceed as per schedule

Despite all of these developments, Maxine Waters, chairwoman of the House Financial Services Committee, stated that the panel is still ready to hold hearings on the collapse of the FTX. The American public needs to fully understand FTX and what was happening, she said.

The founder of FTX has been attempting to avoid or delay the hearing by claiming that he is still lacking all the information regarding the circumstances surrounding FTX’s collapse. Maxine Waters, however, threatened him with a subpoena, obliging him to show up for the hearing.

SBF and FTX are accused of misusing consumer funds while lending them to Alameda Research, which is one of the main charges brought against them. Additionally, SBF has acknowledged that the company’s managers committed a number of errors. He claims he has never attempted to commit fraud or break the law, nevertheless.

The FBI, prosecutors, Department of Justice representatives, and John Jay Ray III, the new CEO of FTX and a specialist in restructuring, met last week at the Manhattan headquarters of SDNY. At the meeting, all of these individuals discussed the possible accusations.

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Mufasa
Mufasa
Mufasa is the lead writer at CryptoMufasa who likes to share all the latest info on the crypto world with you! Mufasa Enjoys enjoys a good read and recommendations so don't forget to comment on the posts and let him know.

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