December 6, 2022

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Sources: Former CEO of crypto exchange FTX may go to US for trial

Sources: Former CEO of crypto exchange FTX may go to US for trial


Photo: ANP

Sam Bankman-Fried, the former CEO of collapsed crypto exchange FTX, may be extradited to the US for trial. According to sources told Bloomberg News, the US Justice Department is in talks with authorities in the Bahamas, where FTX is headquartered. He was previously questioned by authorities in the Bahamas.

Just because he has been questioned by Bahamian authorities does not mean there will be a criminal trial against FTX’s 30-year-old founder. But Bankman-Fried is at risk of prosecution in the United States after it secretly transferred $10 billion from clients, including the Dutch, to its investment firm Alameda. Most of that money has disappeared. At least $1 billion from clients of the defunct crypto trading platform has disappeared without a trace, sources have told Reuters.

On Friday, it was announced that the US-based crypto exchange had applied for a payment deferral and that Bankman-Fried had resigned. On Saturday, FTX announced it was taking the digital currency offline after “unauthorized transactions”. According to market experts, hundreds of millions of dollars have now been withdrawn from the collapsed platform. Bankman-Fried took to Twitter to apologize to FTX customers for the company’s demise.

A lawyer for Banker-Fried was not immediately available to answer questions from Bloomberg. The Justice Department in Washington declined to comment.

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