By
Mayowa Adebajo
April 11th, 2024
In a recent interview, SBF indicated that the FTX US entity is fully solvent and does not understand why the current CEO, John Ray, has not granted access.
After a month-long puzzle, Bahamian law enforcement announced the arrest of former FTX CEO Sam Bankman-Fried on Monday. According to the announcement by the country’s attorney general office and the ministry of legal affairs, the arrest happened after the United States filed criminal charges against SBF. As such, SBF faces extradition to the United States, where several charges – money laundering, wire fraud, and securities fraud – have been filed against him.
SBF Missed Hearing
The arrest follows the announcement that SBF will not appear for a hearing with the United States Senate Banking Committee on December 14. In addition to the laid out charges, a watchdog group – the Citizens for Responsibility and Ethics in Washington – believes SBF made “dark money donations.”
Reportedly, the watchdog group filed the complaint with the Federal Election Commission, accusing SBF of “direct and serious violations of the Federal Election Campaign Act” for donating anonymously to both sides of the political aisle during the 2022 midterm electoral campaigns.
In a recent interview, SBF indicated that the FTX US entity is fully solvent and does not understand why the current CEO, John Ray, has not granted access. Nonetheless, SBF is needed to answer crucial questions like how the company was hacked a few hours before filing for bankruptcy protection.
Gurbir Grewal: We commend our law enforcement partners for securing the arrest of Sam Bankman-Fried on federal criminal charges. The SEC has authorized separate charges relating to his violations of securities laws, to be filed publicly tomorrow in SDNY. https://t.co/ON0LgY4mf4
— U.S. Securities and Exchange Commission (@SECGov) December 13, 2022
Furthermore, the $450 million stolen from FTX accounts have not been recovered, despite SBF showing remorse. Notably, close to 1 million FTX customers and investors have been left stranded with little expectations from the ongoing investigation. Moreover, analysts forecast the case could drag in court for months as other jurisdictions request to charge SBF and FTX.
Is the Crypto Market Safe after SBF Arrest?
Confidence in centralised and decentralised protocols has significantly been shuttered in 2022, with billions of dollars already stolen through faulty Web3 designs. Bitcoin price has sunk below the 2017 bull market, with some analysts forecasting more pain in the near future. Moreover, onchain data shows Bitcoin miners are selling freshly minted coins and old ones to sustain internal operations.
For instance, Argo Blockchain – a cryptocurrency mining company – has announced that it is on the precipice of filing for Chapter 11 bankruptcy protection in the United States.
As such, the arrest of SBF could be the tip of the iceberg. With the bear market likely to exacerbate in 2023. Nonetheless, the United States has shown its stance on cryptocurrency by arresting SBF.
However, Do Kwon – Terra Luna founder – has not yet been arrested after the collapse of over $30 billion in algorithmic stablecoin dubbed UST.