The crypto community rejoiced as reports about FTX’s former chief Sam Bankman-Fried’s arrest began surfacing. SBF was arrested by The Royal Bahamas Police Force following criminal charges filed against him. Since this was filed by the United States, they will most likely seek his extradition. Soon after this, speculations about his prison time began surfacing. While some suggested that he might be there for good, a few others noted how he could get out sooner or later.
This, however, depends on the magnitude of charges that the United States has filed against him. The New York Times reported that the FTX CEO was charged with wire fraud, wire fraud conspiracy, securities fraud, and securities fraud conspiracy as well as money laundering.
In addition to this, the U.S. Securities and Exchange Commission [SEC] is also looking at filing a case against SBF. In a recent tweet, SEC official Gurbir Grewal noted that separate charges pertaining to his violations were in the making. These charges will reportedly be filed publicly tomorrow.
SBF to miss much-awaited hearing before the U.S. House of Representatives Committee on Financial Services
The former FTX chief was arrested at around 6 p.m. at his Albany resort apartment complex in the Bahamas. With him in the custody of the Bahamas police, his return to the U.S. could take time. Even though the countries have an extradition treaty, it will take weeks for him to land in the U.S.
SBF was expected to testify on December 13 before the U.S. House of Representatives Committee on Financial Services. However now, he won’t be able to testify. While the hearing will proceed without him, Rep. Maxine Waters said,
“I am surprised to hear that Sam Bankman-Fried was arrested in the Bahamas at the direction of the United States Attorney for the Southern District of New York. The public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity.”