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Sam Bankman-Fried was released without bail in the Bahamas on Tuesday and remanded in custody until February, hours after American authorities charged him. Co-founder of FTX engaged in a major fraud scheme.
Bahamas Chief Justice JoyAnn Ferguson-Pratt remanded Bankman-Fried to the Bahamas Department of Corrections until February 8, 2023, Reuters reports.
He was arrested on Monday at the request of the US government. On Tuesday, the U.S. attorney for the Southern District of New York, along with officials from the Commodity Futures Trading Commission and the Securities and Exchange Commission, outlined the fraud charges against the former billionaire in an unsealed indictment.
FTX FOUNDER SAM BANKMAN-FRIED ARRESTED IN THE BAHAMAS Awaiting US Extradition Request, Officials Say.
Sam Bankman-Fried, Founder and CEO, FTX, Hong Kong, China. A judge in the Bahamas ordered Bankman-Fried to be held until February 8, despite pending federal charges in the US. (Photo by Lam Yik/Bloomberg via Getty Images/Getty Images)
Federal prosecutors say the 30-year-old diverted investors’ money to cover his expenses, debts and risky trades. crypto hedge fundAlameda Research, in addition to making lavish purchases and illegal campaign contributions without telling its clients.
He is charged with several crimes, including fraud, money laundering and conspiracy to defraud. He faces several decades in prison.
“Mr. Bankman-Fried is reviewing the allegations with his legal team and is considering all of his legal options,” his attorney, Mark S. Cohen, said in an earlier statement.
During Tuesday’s hearing in the Bahamas, Bankman-Fried’s parents laughed at times, while her father occasionally put his fingers to his ears to muffle the sound of the proceedings, Coindesk reported.
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FTX filed for bankruptcy on November 11, when the firm ran out of money after the bank’s cryptocurrency equivalent. Clients tried to withdraw their assets at once as doubts grew about the financial strength of the company and Alameda Research.
The alleged fraud resulted in the loss of billions of dollars in customer deposits.