FTX: Bankman-Fried agrees to be extradited

FTX

Image Source: NPR

FTX founder, Sam Bankman-Fried, is believed to have agreed to be extradited to the US to face charges.

US authorities say that a 30-year-old man from the Bahamas is responsible for “one of the biggest financial frauds in US history.”

Someone close to Mr. Bankman-Fried told the BBC that he had agreed to be extradited, even though he denies the accusations.

Since FTX filed for bankruptcy, many people need help getting their money.

A court document said that FTX owed its 50 biggest creditors almost $3.1 billion (£2.5 billion).

Mr. Bankman-Fried was arrested on December 12 but hasn’t been sent back to the US yet. However, Reuters said he could be sent to the US after a Wednesday court hearing in the Bahamas.

One of the worst things said about him is that he kept his investment trading company, Alameda, going by taking billions of dollars from his customers.

Last week, Damian Williams, the US Attorney for the Southern District of New York, said that Mr. Bankman-Fried was accused of one of the biggest frauds in US history.

The founder of FTX was also accused of giving “tens of millions” of dollars in illegally made money to Democrats and Republicans to help them win elections.

The Securities and Exchange Commission said that the man who used to be known as the “King of Crypto” built a “house of cards on a foundation of deception.”

But Mr. Bankman-Fried has tried to avoid being blamed for doing something wrong.

Mr. Bankman-Fried has also denied that he must have known that Alameda Research was using FTX customer funds.

On the FTX exchange, people could trade real money for cryptocurrencies like Bitcoin.

Cryptocurrencies differ from regular money because they aren’t kept in a bank. Instead, they are kept online and act more like high-volatility investments or securities.

About 1.2 million people signed up to use the FTX exchange, but many still need to find out if they will ever get their money back from the digital wallets they used to store their money.

Mr. Bankman-Fried used to be seen as a younger version of legendary US investor Warren Buffett. As recently as late October, his net worth was estimated to be more than $15bn.

The US says that Sam Bankman-Fried cheated people out of money.

In the case of the failed cryptocurrency exchange FTX, Sam Bankman-Fried is accused of “one of the largest financial frauds in US history,” according to the US government.

Gary Gensler, in charge of the Security and Exchange Commission (SEC), said that Mr. Bankman-Fried built a “house of cards on a foundation of lies.”

Officials have also said he broke the rules about how a campaign can be paid.

Mr. Gensler also said that the charges for alleged fraud should warn other platforms to follow US laws.

Mr. Bankman-Fried will be charged, said both the US Attorney’s Office for the Southern District of New York and the Commodity Futures Trading Commission (CFTC).

Damian Williams, the US Attorney for the Southern District of New York, told reporters on Tuesday that Mr. Bankman-Fried is being accused of one of the biggest frauds in US history.

Mr. Williams also said that Mr. Bankman-Fried had tricked lenders, investors, and customers and used “tens of millions” of dollars in illegally made money to give illegal campaign contributions to Democrats and Republicans.

FTX ran one of the worst financial scams

In an interview with BBC News earlier this month, Mr. Bankman-Fried tried to get away from claims that he had done something wrong.

Mr. Bankman-Fried also said that he couldn’t have known that Alameda Research, a trading company with ties to FTX, was using FTX customers’ money.

People said he was like the well-known US investor Warren Buffett when he was young. Until late October, he was worth more than $15 billion (£12.1 billion).

He is known as a person who gives money to political campaigns. He was caught in the Bahamas and is held until he can be sent to the US. He said on Tuesday that he would fight against being taken away.

John Ray, the company’s new CEO, told a US congressional committee that FTX’s failure seemed to be caused by a small group of people who were not very smart or experienced.

He said he hadn’t seen any records or internal checks.

Read Also: Singapore: FTX collapse ended crypto ambitions 

In the US, FTX went bankrupt last month. Many people had trouble getting their money back because of this.

A court document from last month said that FTX owed its 50 biggest creditors almost $3.1 billion.

On the FTX exchange, people could trade real money for cryptocurrencies like Bitcoin.

Cryptocurrencies are not money in the way that most people think of money. Instead, they are kept online and act more like high-risk investments or securities.

Criminals like to work with them because they can sell drugs and start ransomware attacks without being caught. Still, people who support them say there is much room for innovation and freedom from governments.

Opinions expressed by Miami Wire contributors are their own.

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