In the crypto world, former FTX CEO Sam Bankman-Fried has been making headlines since mid-2022. After losing $30 billion of his crypto empire, Sam Bankman-Fried is arguably the most notorious crypto boss of our time. Now, things are turning south for the eccentric entrepreneur who was once one of the richest men in the world.
After leaving FTX, one of the largest crypto empires in the U.S., on the verge of collapsing, the ex-CEO is in hot water now. In December 2022, Sam was arrested in the Bahamas.
According to the latest updates, FTX owed at least $3 billion to its creditors by the time of the bankruptcy. The company tipped on the verge of collapsing when Binance withdrew its proposal to acquire the company. Binance had agreed to acquire FTX in 2021. But later on, the CEO of Binance, Changpeng Zhao, refused to acquire FTX. “Things are not going well for us,” Zhao tweeted on December 2022. Following the confirmation from Binance, the ex-FTX boss knew that he messed up – as he hinted in his tweet.
Later on, FTX filed a bankruptcy holding the funds of millions of FTX users. In total, the company owed at least $3.1 billion to its creditors. According to the first investigation report, the company currently owes “massive funds” to its 50 large creditors. With so many funds held in FTX, the ex-CEO was arrested by Bahamas police.
In December 2022, the Chief Magistrate of Bahamas, JoyAnn Pratt, “denied” the bail of the notorious FTX boss. The Bahamas magistrate refused to release Sam on bail, citing “greater risks” that the ex-CEO may fly out of the country (if released.) Thus, the magistrate announced that he would be kept on remand till February 2023.
Sam Bankman-Fried Will be Kept on Remand Till Feb, 2023!
On top of FTX’s bankruptcy, Sam Bankman-Fried is dealing with another major allegation. He has been sued for “misusing” FTX funds to prop up his other investment company called Alameda.
However, it is not yet clear whether or not FTX creditors will be able to withdraw their funds. Now that FTX is bankrupt and the CEO has been arrested, chances are that all FTX creditors are very likely to lose their funds. If not, experts anticipate that they will be able to get a “very tiny proportion” of their funds.
It is essential to note here that the ex-CEO of FTX has eight criminal charges against him. Wire transfer fraud, conspiracy to defraud, and money laundering are the major charges that Sam is currently dealing with.
Based on these allegations, the Bahamas magistrate denied releasing the notorious FTX boss on bail. Instead, the magistrate announced that he would be kept on remand till February 8, 2023. the magistrate cited that the notorious CEO may flee the country if he is released on bail.