Sam Bankman-Fried: the arrest of the disgraced crypto crusader
The founder of the failed crypto exchange FTX was arrested on Monday
Another chapter in “the spectacular rise and fall of Sam Bankman-Fried”, founder of the failed crypto exchange FTX, said DealBook in The New York Times: he was arrested in the Bahamas on Monday.
Federal prosecutors in Manhattan are seeking extradition on multiple charges, including defrauding investors and money laundering. “The arrest took many by surprise.” Lawyers said the government may have “moved faster than expected” to avoid “muddying the waters” following Bankman-Fried’s recent “media tour”.
Still, the loquacious entrepreneur hasn’t always helped his own cause. “Like I, like, kind of vaguely knew, kind of, sort of maybe, um, on a qualitative level what was going on,” he told listeners on the Unusual Whales podcast, just before his arrest.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
“[He] built a house of cards on a foundation of deception while telling investors it was one of the safest buildings in crypto,” said Gary Gensler, head of the SEC, which has also filed civil charges. Wall Street’s main regulator alleges that FTX raised more than $1.8bn from backers by “orchestrating a scheme to defraud”.
A big part of that, said Bloomberg, was keeping them in the dark about the undisclosed “diversion” of some $8bn in FTX customer funds to its trading affiliate, Alameda Research.
More than 100 FTX-related companies, including Alameda, have filed for bankruptcy. Yet, so far, the criminal and civil charges “have focused entirely on Bankman-Fried” – raising questions about whether other executives “have been cooperating with prosecutors”.
Indeed, Bankman-Fried could be forgiven “for mulling over past financial scandals with a degree of envy”, said Antony Currie on Reuters Breakingviews. No bank bosses, after all, were brought to book for their role in the financial crisis. Unlike them, he lacks the “cover of systemic risk”.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Create an account with the same email registered to your subscription to unlock access.
-
Magazine solutions - May 10, 2024
Puzzles and Quizzes Issue - May 10, 2024
By The Week US Published
-
Magazine printables - May 10, 2024
Puzzles and Quizzes Issue - May 10, 2024
By The Week US Published
-
'Box Trump in for real if he pulls another stunt. Put him behind bars.'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Shein: could the year’s mega-IPO fall apart at the seams?
Talking Point Latest hitch is a pre-float 'security review' that could deter potential investors
By The Week UK Published
-
Labor market strong as inflation sinks
Feature And more of the week's best financial insight
By The Week US Published
-
Midair blowout: another black mark for Boeing
Feature This isn't the first production issue Boeing has encountered
By The Week US Published
-
Behemoths of the seas
The Explainer Cruise liners keep getting bigger, with the world’s largest 'megaship' ever built set to make its maiden voyage this month.
By The Week Staff Published
-
Holiday season: Fed optimism cheers investors
Feature The feds believe their 'pivot' will make a recession unlikely
By The Week US Published
-
Older workers stay in the labor force
Feature And more of the week's best financial insight
By The Week Staff Published
-
America's most in-demand job
Feature And more of the week's best financial insight
By The Week US Published
-
Currency: the long reign of the mighty dollar
Feature Argentina is planning to drop the peso in favor of the US dollar
By The Week US Published