FTX boss Bankman-Fried arrives in US to face charges
Sam Bankman-Fried, the former CEO of the defunct cryptocurrency exchange FTX, flew from the Bahamas to New York to face fraud charges.
According to US authorities, the 30-year-old was extradited on suspicion of committing “one of the biggest financial frauds in US history.”
Later on Thursday morning, Mr Bankman-Fried, who rejects the accusations, might show up in court. Two of his ex-colleagues have admitted guilt to crimes associated with them.
Gary Wang, a co-founder of FTX, and Caroline Ellison, the former CEO of the cryptocurrency trading company Alameda Research, have both been charged with “roles in the scams that contributed to FTX’s collapse,” according to Damian Williams, the attorney for the Southern District of New York.
He stated in a video that they are both currently cooperating with the Southern District of New York as court documents were publicly disclosed.
Mr. Wang’s attorney stated that his client had taken ownership of his deeds and took his responsibilities as a cooperating witness seriously.
“Samuel Bankman-Fried is now in FBI custody and is on his way back to the United States,” Mr Williams said. “He will be transported directly to the Southern District of New York and he will appear in court before a judge in this district as soon as possible.”
“If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it,” he added. “We are moving quickly and our patience is not eternal.”
Ms Ellison and Mr Wang face separate charges from the US Securities and Exchange Commission (SEC).
Last week, Mr Bankman-Fried was also charged with “orchestrating a scheme to defraud equity investors in FTX”. The SEC said the man who was formerly nicknamed the “King Of Crypto” had built a “house of cards on a foundation of deception”.
FTX boss Bankman-Fried arrives in US to face charges
“As alleged, Mr Bankman-Fried, Ms Ellison, and Mr Wang were active participants in a scheme to conceal material information from FTX investors, including through the efforts of Mr Bankman-Fried and Ms Ellison to artificially prop up the value of FTT [FTX’s in-house token], which served as collateral for undisclosed loans that Alameda took out from FTX pursuant to its undisclosed, and virtually unlimited, line of credit,” according to Sanjay Wadhwa, deputy director of the SEC’s Division of Enforcement.
Due to FTX’s bankruptcy filing, many people are unable to withdraw money.
A court document stated that FTX owed its 50 largest creditors over $3.1 billion (£2.5 billion). One of Mr. Bankman-Fried’s significant accusations is that he used billions of dollars in client money to support Alameda.
Mr. Williams claimed last week that Mr. Bankman-Fried was charged with one of the worst frauds in US history.
According to Mr. Williams, the FTX founder was also accused of utilising “tens of millions” in illegally obtained money to make contributions to both Democratic and Republican candidates.
