FTX Founder Sam Bankman-Fried Extradited to US

Sam Bankman-Fried and his team ran Bahamas-based crypto firm FTX. Until recently, he was considered one of the richest crypto entrepreneurs in the world, but his empire crumbled like a house of cards. He has just been extradited to the United States after spending a week in prison. “I am as shocked by what happened last month as many others,” he said after his arrest.

Sam Bankman-Fried loses and is extradited to the United States

The SEC and the New York Public Prosecution Service filed a lawsuit earlier this month and hold Bankman-Fried responsible for years of systematic investor defrauding. “Unbeknownst to investors, Bankman-Fried orchestrated a major, years-long fraud that used billions of dollars in client assets for personal gain and the growth of his own empire,” the SEC writes.

He is also suspected of fraud, criminal association and money laundering. Based on this, he was arrested last week by US officials. Just like two of its most influential employees, Caroline Ellison (former director of Alameda Research, Bankman-Fried’s investment company) and Gary Wang (co-founder of FTX).

They have since been released after posting $250,000 bail and pleading guilty to awaiting trial in the United States. This sentence results in a significant reduction in sentence. If they had not acted accordingly, Ellison risked 110 years in prison and Wang 50 years.

“One of the biggest financial fraud cases in US history”

Attorney Damian Williams believes the contractor and co’s shady practices are part of “one of the biggest financial fraud cases in American history”. Bankman-Fried raised some $1.8 million from investors, but used it for its own interests. In a video statement, he said “the investigation is in full swing”.

Bernie Madoff was arrested within 24 hours and sentenced to 159 years in prison. Sam Bankman Fried will be sent to Dc, where the Deep State will cover up the fact that it stole 35 billion from investors and gave most of it to the Democrats campaign, and most likely released. pic.twitter.com/4e3EXK5LCS

— Charlie Ly (@cmlyon67) December 13, 2022

Conflict of interest did the trick

Until November, FTX was one of the largest crypto exchanges in the world, but suddenly that turned around. Investors lost faith in the company when it was disclosed that there was a conflict of interest between FTX and Alameda. An estimated $10 billion from FTX customers was used to pay off Alameda’s debt.

Binance was interested in acquiring FTX, but the crypto exchange told the Wall Street Journal that the issues are “so big that we can’t contain them and we can’t help them.” After a variety of clients, businesses and investors withdrew, Sam Bankman-Fried’s wealth fell from around $17 billion to less than $1 billion, a drop of no less than 94%. “The biggest loss of value in a day”, headlined the business magazine Bloomberg.