FTX cryptocurrency founder is arrested in the Bahamas

Bahamas judge denied bail to Sam Bankman-Friedfounder of the bankrupt platform for buying and selling cryptocurrencies and other cryptographic assets FTX, arrested on Tuesday in the country after a “notification” from the United States and with a view to his possible extradition.

Judge Joyann Ferguson-Pratt indicated after a hearing that lasted several hours that there is a high risk of escape that prevents Bankman-Fried from being able to benefit from a release on bail, according to the newspaper The Nassau Guardian.

Thus, he ordered that he remain in custody until February 8 following his arrest at his residence in Albany, Nassau. Bahamas Attorney General Ryan Pinder said Tuesday that “at the time a formal extradition request is made, the Bahamas plans to process it expeditiously.”

The US authorities have charged eight counts against Bankman-Fried, including conspiracy to embezzle client funds, while the president of the Securities and Exchange Commission (SEC), Gary Gensler, accused the detainee of “building a house of cards with pillars of lies”, as reported by the US television network CNN .

FTX announced in mid-November that it had decided file for the protection of Chapter 11 of the United States Bankruptcy Law to carry out in an orderly manner the process of evaluation and liquidation of assets for the benefit of the interested parties. Thus, he explained that the FTX Group process includes FTX US, as well as the commercial firm Alameda Research and a total of 130 affiliated entities.

FTX’s solvency had been called into question after its rival Binance decided to give reversing his intention to come to the rescue of the platform, after having carried out due diligence and before the opening of investigations by government agencies in the United States.

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Earlier, at an investor conference, Bankman-Fried, still CEO of FTX, had estimated the hole in the platform at about 8 billion dollars, including the need for around 4 billion dollars so that the firm could maintain its solvency.


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