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Sam Bankman-Fried – the man behind now failed digital currency exchange FTX – has been arrested while stationed in the Bahamas and is being extradited to the United States, where he will face criminal charges after they were filed in a New York court.
Sam Bankman-Fried Is Heading to an American Jail
The criminal charges come by way of the Department of Justice (DOJ), though now the Securities and Exchange Commission (SEC) is filing its own civil suit against the disgraced crypto mogul. The agency says that Sam Bankman-Fried orchestrated what he referred to as a "multi-year fraud" in a statement, and they use it to set an example for any other potential criminal who sees space as a place to commit crimes and profit from investors.
The SEC says Sam Bankman-Fried used others' money for "his own personal gain and to help grow his crypto empire."
Former U.S. prosecutor Renato Mariotti says Bankman-Fried has undoubtedly soured the crypto space permanently for some. In an interview, he commented:
From the DOJ’s perspective, SBF was spreading misinformation and was creating a lack of confidence in the regulators to police the market.
He added that there was great fear that Bankman-Fried would get away with everything he had done because of his connections with political authorities. It is estimated that he donated more than $40 million to various democrat politicians alone. He is also ranked second among Biden's donors. Many asked the Democrats about their intention to return that money and revoke their links to the crypto executive.
Mariotti says biden and his buddies widely see crypto space through a skewed objective. They consider the industry to be unregulated and unsafe, and they will likely use this incident to their benefit and monitor the activity with lynx eyes. He said:
The [Biden] administration believes that the digital asset space is unregulated and thinks that [crypto firms] can get away with anything.
A Real Damper in the Crypto Agenda
FTX will likely go down as one of the biggest embarrassments of the digital currency space. In 2019 and subsequent years, ftx was only about three, Yet it has sort of moved up the ladder and has become one of the top five crypto trading platforms in the world. Sam Bankman-Fried was hailed as a genius by many, and his net worth before the collapse of the business was estimated at over $16 billion.
However, it is alleged that bankman-fried used the clients' funds to buy luxury condominiums for itself and an assortment of ftx executives and employees in the bahamas, the country of the exchange. The company was initially going to be bought out by Binance after it experienced a liquidity crunch, though this never came to be.
