Sam Bankman-Fried dubbed as 'next Warren Buffet' arrested over crash of FTX

By FactsWow Team

Posted on: 13 Dec, 2022

Sam Bankman-Fried, a dogged cryptocurrency tycoon and former CEO of FTX, was booked in the Bahamas after being criminally accused by US prosecutors. Following the catastrophic failure of Bankman-FTX Fried's platform, US authorities have attempted to bring charges against him.

Sam Bankman-Fried arrested in Bahamas

The arrest occurred in the Bahamas the night before Bankman-Fried was supposed to testify under oath on the unforeseen collapse of the cryptocurrency exchange at a US Congress hearing.

Prosecutor Damian's statement

The American prosecutor Damian Williams in his statement.

'Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the US Government, based on a sealed indictment filed by the southern district of New York,'

Damian further added, 'We expect to move to unseal the indictment in the morning and will have more to say at that time.'

FTX biggest cryptocurrency exchange

In one of the most high-profile cryptocurrency exchanges, FTX, once one of the biggest cryptocurrency exchanges in the world, filed for bankruptcy protection on November 11.

Reason for FTX downfall

The liquidity crisis resulted from Bankman-Fried surreptitiously transferring $10 billion of FTX client cash to Alameda.

Truth behind FTX collapse exposed

After a November 2 report on connections between FTX and Alameda, a trading firm also under Bankman-ownership, Fried's exposed that Alameda's balance sheet was mainly based on the FTT currency—a token issued by FTX and with no independent value—price FTX's collapsed.

Fall of FTX Empire

Fried developed the cryptocurrency exchange FTX in 2019, which some have praised as the finest derivatives platform ever created, and has plunged into a major downfall.

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