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FTX Founder Sam Bankman-Fried Arrested as Crypto Community Reacts



FTX Founder Sam Bankman-Fried Arrested as Crypto Community Reacts

The founder and former CEO of the collapsed FTX exchange Sam Bankman-Fried (SBF) has been arrested by the Royal Bahamas police on Dec. 12 with a view to extraditing him to the U.S. for onward prosecution. 

Reports indicated that SBF was arrested by the Royal Bahamas police based on the request of the U.S. government. This happened a day before he is slated to testify at the hearing of the U.S. House Financial services committee. 

It was reported that SBF was charged with wire and securities fraud, conspiracy to money laundering, among others. 

However, the U.S. government is preparing to file an extradition of SBF and indicators show that Bahamas authorities are ready to process the extradition request with immediate effect. 

This was subsequently ascertained by a Dec. 12 tweet from the U.S. Attorney’s Office for the Southern District of New York, which states that SBF was arrested based on a sealed indictment filed by the SDNY. 

Meanwhile, Bahamian Prime Minister Philip Davis remarked that the U.S. and the Bahamas have an unanimous stance on holding every individual responsible for the FTX collapse accountable. 

Reactions Trail FTX Collapse


Following the arrest of SBF, a number of mixed reactions have been expressed within the crypto community. A popular TV Host Chef Andrew Gruel tweeted that SBF arrest will not enable him to testify in front of congress, thereby describing the scenario as a ‘performance.’

In the same vein, member of the House Financial Services and Foreign Affairs Committees Lee Zeldin remarked that SBF should have been allowed to testify and answer the numerous lingering questions before being arrested. 

Meanwhile, Jimsta, a global consultant supported the arrest, saying that even if SBF will no longer testify at the U.S. committee hearing, jail will not be bad for me. 

Amidst the ongoing furore, what should be prioritized is uncovering the mystery behind FTX collapse and how creditors/users can recover their funds.