The famous American entrepreneur Sam Bankman-Fried who founded FTX, has been accused of committing eight crimes related to conspiracy and fraud. As per the charges, he has been involved in money laundering, wire fraud, and other financial conspiracies.
Reports have considered Bankman-Fried to be the reason for the downfall of cryptocurrency exchange company FTX. He is currently behind the bars after his arrest on Monday from his residence in the Bahamas.
FTX founder Sam Bankman-Fried is jailed
The 30-year-old entrepreneur, Sam Bankman-Fried was arrested on Monday from his house with the charges of money laundering and fraud. He was presented in the Nassau court the following day and was accused of eight criminal allegations. As per the report, Bankman-Fried could get imprisonment for over 115 years for his criminal charges.
Bankman-Fried is the founder of the cryptocurrency exchange firm FTX and has served as its CEO. He launched the company in 2019 alongside Gary Wang that has its headquarters in Nassau, Bahamas. The company has been under bankruptcy currently. Several reports have blamed Bankman-Fried’s conspiracies to be the reason for FTX’s fall.
What did the authorities state regarding Sam Bankman-Fried’s arrest?
The authorities have targeted Bankman-Fried’s huge political donations in 2022 to link all the allegations. The investigation has found that he is involved with campaign finance law violations in addition to money laundering and wire fraud. It has been learned that the businessman has utilized the funds of the FTX investors in personal investments in creating ventures and buying real estate properties along with political donations.
After his arrest, Bankman-Fried’s lawyer, Mark S. Cohen, attempted to plead his bail, but Joyann Ferguson-Pratt, the Chief Magistrate of the Commonwealth of The Bahamas denied it. Cohen has stated that Bankman-Fried and his group of lawyers have been analyzing the charges made against him, considering all the available legal facilities.