Mixed Emotions as FTX’s Bankman-Fried is Arrested in Bahamas

Sam Bankman-FriedArrests in the BahamasInteresting timing.” Co-Founder of Collapsed Digital Asset Exchange FTX I am scheduled to testify before the U.S. Congress this week.

Bahamian police have arrested the former FTX CEO after receiving formal notice of criminal charges against him from the US.Bankman-Fried is set to be extradited to the US.

“The Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX who may have betrayed public trust and violated the law,” it said. Bahamas Attorney General’s Office and Department of Justice.

“Although the United States has separately filed criminal charges against the SBF, the Bahamas will pursue its own regulatory and criminal investigation into the collapse of FTX with continued cooperation of law enforcement and regulatory partners in the United States and elsewhere. continue.”

FTX owes more than $3 billion to just 50 creditors, according to court filings.

“Interesting Timing”

Prior to this arrest, Bankman-Fried was scheduled to testify before the US Congress tomorrow. The Financial Services Committee of the US House of Representatives is investigating the events that led to the implosion of FTX.

Sheila Warren CEO of Crypto Council for Innovation,comment: Arrests have always been questioned. The interesting timing is just before the two congressional hearings. As authorities around the world build their cases, the only certainty is that the story is far from over.

“Real people have been affected by these actions and members of Congress wanted answers to some very serious questions. keep asking.

“In 2023, there will likely be more emphasis on cryptography in Congress. will be done.”

‘It was disappointing’

Congressman Maxine Waters The chairman of the House Finance Committee expressed surprise at the arrest.

“The time has come to begin the process of bringing Mr. Bankman-Fried to justice. -We have been working diligently over the past month to secure Mr. Fried’s testimony, and this afternoon Mr. Bankman-Fried and his lawyers informed us that he is still scheduled to appear before the committee tomorrow. Confirmation was received, after which he was arrested.

“Mr. Bankman-Fried must be held accountable, but the American people deserved from Mr. Bankman-Fried the loss of over a million people and the loss of so many hard-earned lives. deserves to hear firsthand about the actions that robbed the

“The public has been eagerly awaiting these answers under oath in Congress, but the timing of this arrest denies the public this opportunity. While we are disappointed that we are not, we remain committed to figuring out what happened and the Commission looks forward to hearing from John Ray III tomorrow to begin an investigation. There is.”

Congressman Lee Zeldin Waters, who is also a member of the committee, tweeted: House GOP
I was ready to grill him 6 times by Sunday…. Why don’t we let him testify first tomorrow and answer our many questions?”

Impact on crypto

Susanna Streeter Senior Investment and Market Analyst Hargreaves Lansdowne He said the arrest would “send new tremors to the cryptocurrency world.”

“His rise to power and wealth and his dramatic fall from grace epitomize the perilous rollercoaster ride of the wild west of cryptocurrency, where so many plans have collapsed and burned to the ground,” Story said. Tar says.

“His company spent a lot of money promoting its ‘credibility’, with up to a million people putting cash into the exchange. Many now fear they may not be able to recoup their savings, with the top 50 creditors believed to be about $3.1 billion in debt. The FTX implosion sent shockwaves through the cryptocurrency world, and Bankman-Fried’s arrest returned Bitcoin to another precarious state.

“This scandal has reinvigorated the resolve of lawmakers and regulators to regulate cryptocurrencies not just in the U.S. but around the world. They walk a tricky tightrope. It’s clear that much better protection needs to be put in place to ensure better protection against breaches, but at the same time, regulators don’t want to squash innovation in the digital coin and blockchain space. .

“The challenges will be hatched without giving too much legitimacy to an industry where fraud is rife and the intrinsic value of coins and tokens is sorely lacking. European Central Bank Bitcoin is at its last gasp, warns, but other jurisdictions risk being seen as safe havens for illicit money if they spread their arms too wide to welcome the crypto industry There is

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