According to US authorities, the 30-year-old, who resides in the Bahamas, is suspected of committing “one of the greatest financial frauds in US history.”
A close friend of Mr. Bankman Fried, who vigorously refutes the accusations, told the NEWS RECITAL that he had consented to extradition.
Due to FTX’s bankruptcy filing, many people are unable to withdraw money.
A court document stated that FTX owed its 50 largest creditors over $3.1 billion (£2.5 billion).
Following his detention on December 12, it is unclear when Mr. Bankman Fried will be extradited to the US.
One of the most significant accusations against him is that he propped up his investment trading firm Alameda with billions of dollars in customer money.
The Southern District of New York’s US Attorney, Damian Williams, claimed this week that Mr. Bankman Fried was charged with perpetrating one of the biggest scams in US history.
According to Mr. Williams, the FTX founder was also accused of utilizing “tens of millions” in illegally obtained money to make contributions to both Democratic and Republican candidates.
The former “King Of Crypto,” according to the Securities and Exchange Commission, had constructed a “house of cards on a foundation of lies.”
However, Mr. Bankman Fried has made an effort to remove himself from claims of wrongdoing. Prior to his arrest, he stated the following in an interview with NEWS RECITALNews: “I didn’t purposefully engage in fraud. I don’t believe I defrauded anyone. All of this was something I wanted to avoid. Definitely not as proficient as I had believed I was.”
Additionally, Mr. Bankman Fried refuted claims that he must have known Alameda Research was using money from FTX customers.
Customers could exchange their regular currency for cryptocurrencies like Bitcoin on the FTX market.
Cryptocurrencies are not conventional money; instead, they are digital assets that function more like securities or investment vehicles, frequently with extreme levels of volatility. There were an estimated 1.2 million registered users of FTX who were actively using the exchange, but many are now left to wonder whether they will ever be able to retrieve the money they had stored in FTX’s virtual wallets.
Mr. Bankman Fried, whose net worth was reported to be more than $15 billion as recently as late October, was once compared to a younger version of the famous US investor Warren Buffett.