After the anticipation, drama and conspiracy theories, Sam Bankman-Fried – the previous chief government and founding father of the fallen crypto trade FTX – is lastly arrested, a number of information retailers reported.

Authorities arrested Bankman-Fried on Monday, December 12, in The Bahamas – the place FTX is headquartered – after the crypto tycoon was criminally charged by U.S. prosecutors.

Bankman-Fried was arrested with none untoward incident.

“Earlier this night, Bahamian authorities arrested Samuel Bankman-Fried on the request of the U.S. authorities, based mostly on a sealed indictment filed by the southern district of New York,” Damian Williams, the U.S. Legal professional for the Southern District of New York, tweeted, in accordance with Agence France-Presse by way of The Philippine Star.

USA Damian Williams: Earlier this night, Bahamian authorities arrested Samuel Bankman-Fried on the request of the U.S. Authorities, based mostly on a sealed indictment filed by the SDNY. We count on to maneuver to unseal the indictment within the morning and may have extra to say at the moment.

— US Legal professional SDNY (@SDNYnews) December 12, 2022

Former FTX CEO Sam Bankman-Fried. Picture: Spencer Heyfron.

Collared Earlier than Congress Look

The arrest happens shortly earlier than Bankman-Fried’s digital look earlier than the Home Monetary Companies Committee on Tuesday, the place he was anticipated to talk on the failure of the cryptocurrency trade one month in the past.

The Bahamas legal professional normal’s workplace issued a information launch stating that they might be holding Bankman-Fried in anticipation of an extradition request from the U.S. authorities.

His arrest is the primary tangible step taken by authorities to carry people accountable for the multibillion-dollar disaster of FTX.

Rep. Maxine Waters (D-CA), who chairs the Home Monetary Companies Committee, expressed “shock” at his seize and remorse that the U.S. Congress isn’t going to have the ability to hear his facet of the story.

Working FTX, Bankman-Fried accrued billions of {dollars} in private wealth. The arrest is a startling reversal of fortune for the 30-year-old mogul who referred to as the pictures at one of many world’s largest crypto exchanges, which was valued at $32 billion early this yr.

Sam Bankman-Fried Going through A number of Legal Expenses

Celebrities promoted his trade platform in tv commercials, and the technological prodigy grew to become such a daily fixture in Washington, the place he contributed tens of thousands and thousands of {dollars} to varied political campaigns.

In response to Reuters (by way of Rappler), FTX, Bankman-Fried’s dad and mom and senior executives of the corporate acquired over 20 properties within the Bahamas valued over $120 million in the course of the previous two years.

In a December 12 interview with Forbes, SBF as soon as once more blamed Binance CEO Changpeng Zhao for his firm’s downfall. He alleged that “CZ” meant to stifle competitors by destroying FTX.

Bitcoin plummeted to a two-year low following the collapse of FTX as traders feared the corporate’s points would unfold to different crypto organizations, which they did.

In the meantime, New York Occasions disclosed, citing a supply with information of the scenario, that Bankman-Fried is charged with wire fraud, securities fraud, wire fraud conspiracy, securities fraud conspiracy, and cash laundering.

The U.S. Securities and Change Fee has additionally carried out a separate set of costs towards SBF.

Some authorized consultants say that Bankman-Fried may spend a long time behind bars if discovered responsible of the costs towards him.

Nevertheless, U.S. prosecutors should first search his extradition from the Bahamas to New York earlier than he can start serving his sentence.