After Spectacular Collapse of FTX, Sam Bankman Behind Bars

FTX founder Sam Bankman behind bars but arresting him isn't going to be straightforward

Sam Bankman Behind Bars: The volatility of the Cryptocurrency market could be well understood from the Sam Bankman-Fried incident. But after the anticipation, drama and conspiracy theories, Sam Bankman-Fried – the former chief executive and founder of the fallen crypto exchange FTX – is finally arrested, multiple news outlets reported.

Barely a few months ago the world was going crazy about the 30-year-old billionaire who was labeled as 'the next Warren Buffett' because of his unparalleled understanding of cryptocurrency-based investment scenarios. Authorities arrested Bankman-Fried on Monday, December 12, in The Bahamas – where FTX is headquartered – after the crypto tycoon was criminally charged by U.S. prosecutors.

Bahamian authorities have arrested Sam Bankman-Fried, the former CEO of FTX, after the U.S. government brought unspecified criminal charges against them. The arrest of the former crypto billionaire was confirmed by Damian Williams, the U.S. attorney for the Southern District of New York, via Twitter.

USA Damian Williams: Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. Government, based on a sealed indictment filed by the SDNY. We expect to move to unseal the indictment in the morning and will have more to say at that time.

— US Attorney SDNY (@SDNYnews) December 12, 2022

In a statement shared with the press, Philip Davis stated that the United States and Bahamas have a common interest in holding accountable all persons associated with FTX.

Attorney General of the Bahamas has said @SBF_FTX has been arrested following "receipt of formal notification from the United States that it has filed criminal charges against SBF and is likely to request his extradition."

— sarah emerson (@SarahNEmerson) December 12, 2022

The global Cryptocurrency market is going through the toughest phase of its existence and credibility. Traders and investors have been maintaining a distance from the market for some time which has resulted in Crypto winter. Once among the world's largest cryptocurrency exchanges, FTX filed for bankruptcy protection on November 11 in one of the highest-profile crypto blowups.

The liquidity crunch came after Bankman-Fried secretly moved $10 billion of FTX customer funds to Alameda, Reuters reported, citing two people familiar with the matter.

Sam Bankman led FTX was the fourth largest cryptocurrency exchange that collapsed in a dramatic fashion earlier this year. Failing to deal with the tough market conditions it filed for bankruptcy in November, as Bankman-Fried stepped down as CEO.

FTX's valuation imploded following a November 2 report on ties between FTX and Alameda, a trading company also controlled by Bankman-Fried, which exposed that Alameda's balance sheet was heavily built on the FTT currency – a token created by FTX and with no independent value.