FTX founder Sam Bankman-Fried Arrested in the Bahamas after US Files Charges

(CTN News) – Sam Bankman-Fried, the creator of FTX, was detained in the Bahamas on suspicion of fraud, and the court denied him bail.

He is accused of fraud and breaking campaign finance regulations by US authorities.

His bail was rejected because he posed a “high” flight risk. He was sent to the Bahamas’ department of prisons until February 8, 2023, per a judge’s ruling.

In what is regarded as one of the “largest financial scams in American history,” Sam Bankman-Fried is charged with making unauthorized political donations to both Democrats and Republicans using “stolen consumer money.”

According to US attorney Damian Williams, the founder of FTX contributed tens of millions of dollars to political causes. According to Al Jazeera, if found guilty on all eight charges, he may get a maximum term of 115 years in jail.

Williams remained mum on whether more FTX executives or insiders were facing charges and shied away from commenting if they were helping the continuing investigation.

In complaints filed yesterday, the US Securities and Exchange Commission and the Commodity Futures Trading Commission also accuse Sam Bankman-Fried of fraud.

Sam Bankman-Fried established FTX in 2019, growing it into one of the biggest platforms for exchanging digital currencies.

Since then, equity investors have given FTX more than US$1.8 billion.

But according to the SEC, Sam Bankman-Fried disguised the fact that FTX was moving consumer assets to a cryptocurrency hedge fund that was linked with it. One year earlier, Forbes estimated his net worth to be USD 26.5 billion.

But on November 11, the FTC filed for bankruptcy, ending its run of success and leaving millions of consumers and investors with billions of dollars in damages.

Its downfall sent Bitcoin and other digital assets into the ground. The collapse was one among some bankruptcies this year in the crypto industry.