The Bahamas Extradited The Founder Of The FTX Crypto Exchange To The United States

The Bahamas extradited the founder of the FTX crypto exchange to the United States. Two of his colleagues have already pleaded guilty to fraud

The Bahamas extradited Sam Bankman-Fried, the founder of the bankrupt crypto exchange FTX, to the United States of America. This was announced by the Southern District of New York prosecutor, Damian William.

Bankman-Frieda is accused of creating a multibillion-dollar crypto-pyramid, which the US Attorney’s Office describes as one of the largest financial scams in American history. The fall of FTX caused the cryptocurrency market to collapse and left many investors empty-handed.

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Bankman-Fried denies the fraud charges, but prosecutors said two of his former colleagues — FTX co-founder Gary Wang and the CEO of related firm Alameda Research Caroline Ellison — are already cooperating with the investigation.

Wang pleaded guilty to four counts, Ellison to seven.

The US Securities and Exchange Commission (SEC) separately charged Allison and Wang with defrauding investors. The regulator said they were active participants in the fraudulent scheme and were crucial to its success.

The SEC explained that Ellison illegally used funds from FTX clients in the Alameda Research business, and Wang created software code that allowed them to redirect the assets of users of the cryptocurrency exchange to the accounts of this trading company.

FTX was recently the third largest crypto exchange in the world (the first two being Binance and CoinBase). In 2022, three years after its launch, the exchange’s customer base exceeded one million users. At the beginning of the year, the value of FTX was estimated at $32 billion. All the data could be found on BTI LIVE

FTX founder Sam Bankman-Fried (known in the market by the initials “SBF”) was considered one of the most successful people in the crypto market. At its peak, his fortune was estimated at $26 billion.

At the beginning of November 2022, FTX went bankrupt, and on November 9, Benkman-Fried was “written off” from the list of billionaires.