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Cryptocurrency exchange FTX goes bankrupt: Bankman-Fried extradited to the USA – The Economy

The founder of the now bankrupt FTX cryptocurrency exchange, Sam Bankman-Fried, suspected of fraud, is on his way back to the United States. The Bahamas Attorney General said he waived his right to challenge the extradition. The 30-year-old was arrested ten days ago at the request of the US authorities in the Caribbean country.

In the US, the former head of FTX is facing a lengthy prison sentence and must face several lawsuits there. On Wednesday evening, he and the FBI agents boarded a plane that took off for New York. Bankman-Fried is expected to appear in federal court in Manhattan on Thursday.

FTX filed for bankruptcy protection on November 11th after clients withdrew en masse in response to the secretive move of $10 billion in deposits. Bankman Fried resigned as president the same day. He apologized to customers but denied allegations of fraud. The collapse of FTX has shaken the crypto world.

The Attorney General for the Southern District of New York announced shortly thereafter that two senior FTX executives had pleaded guilty to fraud. Carolyn Ellison, former head of Alameda Research, and Gary Wang, former CTO of FTX, are suspected of their roles in The fraud that reportedly led to the downfall of FTX, Accused. Both stated that they would work with the attorney general to clarify the background to the bankruptcy.

“Both Ms. Ellison and Mr. Wang have pleaded guilty to these charges and are cooperating with the Southern District of New York,” US Attorney for the Southern District of New York Damien Williams said in the video statement. US Securities and Exchange Commission (Securities and Exchange Commission) and the Commodity futures trading commission They also announced separate lawsuits against Wang and Ellison.