Sam Bankman-Fried Might Be Extradited to the US Amid FTX Investigation

America and Bahamas authorities are discussing the potential of bringing Sam Bankman-Fried to the US for questioning as new authorized proceedings towards FTX and its former CEO had been additionally launched on Wednesday. SBF’s collapsed crypto change FTX, which filed for chapter within the US final week, has fanned fears about the way forward for the crypto business after it outlined a ‘extreme liquidity disaster’. Since then, the regulators have opened investigations and the lawmakers have referred to as for clearer guidelines on how the business operates.

Citing a number of sources concerned within the discussions, a Bloomberg report said that “conversations between law-enforcement officers within the two international locations have intensified in current days,” and that Bankman-Fried has been “cooperating” with the Bahamian authorities, who interviewed him on Saturday.

The report stated nobody concerned within the collapse of FTX and Alameda has been arrested or taken into custody but. The US Justice Division, the US Lawyer’s Workplace for the Southern District of New York, and the Royal Bahamas Police’s monetary crimes unit all declined to remark as of Wednesday morning.

Along with the previous CEO, FTX co-founder Gary Wang and director of engineering Nishad Singh are nonetheless within the Bahamas and stay “underneath supervision” by native authorities. Over the weekend, there have been rumours that Bankman-Fried and Alameda CEO Caroline Ellison had been seeking to flee to Dubai.

On Tuesday night, SBF posted a collection of tweets claiming that “to one of the best of [his] information,” Alameda had extra (illiquid) belongings than liabilities marked to market; Alameda had a margin place on FTX Worldwide; and that FTX.US nonetheless had sufficient to repay all its clients. “Not everybody essentially agrees with this,” he wrote.

He claimed that his one purpose is to “do proper by clients” and that he is been assembly in particular person with regulators. He did not specify which regulators, representing which international locations. He stated that there was an excessive amount of leverage, “greater than I realised. A run on the financial institution and market crash exhausted liquidity.”