Sam Bankman-Fried finally arrested in the Bahamas 

Adeniyi Odukoya
Sam Bankman-Fried finally arrested in the Bahamas 

Sam Bankman-Fried, the former CEO of the defunct FTX cryptocurrency exchange has been arrested by security officials in the Bahamas at the request of the U.S. government.

FTX was an exchange platform that investors used to trade cryptocurrency for other assets, including digital currencies or cash. Investors could also store their cryptocurrencies in digital wallets, similar to a bank.

Sam Bankman-Fried has been at the receiving end of some heavy backlash from FTX’s legal representatives, Binance CEO, and his replacement as FTX CEO, John J. Ray III since the crash of the crypto exchange which was the second-largest by trading volume at the time.

Some crypto users believe that the arrest of Sam Bankman-Fried has been long overdue. But that was initially impossible because there were no charges levelled against him.

Sam Bankman-Fried is set to be extradited to the US, as revealed by the attorney general’s office for the Bahamas. “We expect to unseal the indictment in the morning and will have more to say at that time.” the US attorney, Damian Williams said.

Read Also: The aftermath of the FTX: Is blockchain doomed to die?

FTX saga and Sam Bankman-Fried’s mischief

Reports about FTX irregularities broke the airwaves after CoinDesk published a balance sheet for the exchange early in November 2022, bringing devastating news that dissolved the teeming optimism for the bearish crypto market.

Sam Bankman Fried SBF

Within a week, the revelation spurred a significant amount of withdrawals and the company filed for bankruptcy in the US. Though suspected as the main culprit, Sam Bankman Fried was not apprehended as he relinquished his position as FTX’s CEO and left for the Bahamas.

Since he fled to the Bahamas, Sam has refused to appear before US lawmakers. He did not make any public appearances but was emphatically expressive via his Twitter account through the FTX meltdown. Sources say that he made a tweet even before he was apprehended.

Sam Bankman Fried has previously revealed that it was really uncomfortable for him to make public appearances—he had said in the early hours of the day that he would be “calling in” to the hearing before the House financial services committee from the Bahamas.

On Monday, he was a participant in a Twitter chat with the Twitter account Unusual Whales, where he said that it has been arduous for him “to move right now and travel because the paparazzi effect is quite large.”

Read Also: Lucky Uwakwe of Sabi Groups speaks on FTX crash and vulnerabilities of centralised exchanges

In response to his decision to not appear at the hearing scheduled for tomorrow, Congresswoman Mazine Waters said,

“Although Mr Bankman-Fried must be held accountable, the American public deserves to hear directly from Mr Bankman-Fried about the actions that’ve harmed over one million people, and wiped out the hard-earned life savings of so many,” she said.

“The public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity.”

Congresswoman Mazine Waters
FTX files for Bankruptcy
FTX files for Chapter 11 Bankruptcy in the US

Water believes that Sam Bankman-Fried needs to publicly address the questions surrounding FTX’s sudden crash. The people ought to be bestowed the chance to openly hear the man behind FTX’s bankruptcy give veracious answers to the public’s questions.

Bankman-Fried stated in a sworn statement that he was coerced into selecting Ray as his replacement by legal representatives who functioned as an advisory arm to his firm at the time. Though an offer sauntered in, seeking to save the firm, Bankman said it was too late.

Read also: Sam Bankman-Fried suspects a former employee caused FTX’s loss of over $650 million

FTX’s bulwark has sparked several reactions from the public, and the most notable demand is the request for stricter regulation of the cryptocurrency sector.

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