FTX is one of the cryptocurrency companies that was declared bankrupt recently. Sam Bankman-Fried is one of the co-founders of the company who has been charged with performing crypto fraud. As per reports of Damian Williams, the top federal prosecutor of Manhattan has stated, “The FTX case is the biggest financial fraud in American history.”
The bankrupt company-FTX’s former founder Sam Bankman-Fried has reached the U.S. to face criminal charges. Bankman-Fried has stated that he would fight against his extradition after his arrest a week ago in the Bahamas. Bankman-Fried was asked to appear in the court of the Bahamas on Monday, where he has to surrender himself for the financial fraud charges.
After fighting on Monday for his extradition to the U.S., he was denied bail and remanded to the Caribbean nation’s Fox Hill prison. One news agency, Thomas Reuters, reported that he would come back to fight against his extradition. The charges imposed on Sam Bankman-Fried are unacceptable on his side, as he keeps stating that he cannot take charges of criminal liability.
Sam Bankman-Fried has earned goodwill in the market; he was a tycoon who rode the bitcoin value and other assets to become a billionaire. He was also represented as a political donor in the United States. Soon the unexpected happened after a wave of withdrawals in November took place, and FTX collapsed in a blink of an eye. On the 21st of November, the company was declared bankrupt.
One of the federal prosecutors in Manhattan stated that “Bankman-Fried stole billions from the FTX customer deposits to overcome his losses for the crypto hedge fund. In addition, Bankman-Fried was accused by the prosecutors for misleading investors and lenders for the conspiracy of laundering money and violating U.S. campaign’s financial laws.”
When he surrendered himself in the U.S., he was noticed to be present in Manhattan within two days. However, prosecutors are still unsatisfied and want to have a one-on-one argument that Bankman-Fried has committed a horrible fraud and should be punished and put in custody for his deeds. Such financial crimes should not be supported by any party, as well as the theft of a large sum of money that remains settled in various unclear locations.
When the question was raised on not providing bail to Bankman-Feider, the answer was satisfactory enough. Previously, many such cases came in contact, such as Ponzi schemer Bernard Madoff, Theranos founder of Elizabeth Holmes, and Enron executives Jeffery Skilling and Kenneth Lay, who were all granted bail before the trial. However, the unfair affairs conducted by Sam Bankman-Fried is non-negligible. His subsequent trial will be more than a year away; since then, he will be in custody. He had been remanded to the prison, where the Chief Magistrate JoyAnn Ferguson-Pratt rejected his plea while awaiting to hear about his extradition. They did not permit him to remain at home.
- Published By Team Australia News
