Bahamas may extradite FTX boss Sam Bankman-Fried

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Authorities in Bahamas have arrested Sam Bankman-Fried, the founder of scandalous crypto cryptocurrency exchange FTX after criminal charges were filed in the US. The development comes one day before Bankman-Fried had agreed to testify before the US House Financial Services Committee regarding the collapse of his Nassau-based exchange.

According to a statement shared by the Bahamian Office of the Attorney General & Ministry of Legal Affairs, the Royal Bahamas Police detained Bankman-Fried following receipt of formal notification from the United States it has filed criminal charges against the fallen crypto billionaire.


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The Attorney General said it will hold Bankman-Fried in custody pursuant to the Bahamas’ extradition treaty. The US government’s extradition treaty with the Bahamas lets the US extradite defendants for charges involving offenses that are crimes in both countries.

“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the US Government, based on a sealed indictment filed by the SDNY”, Damian Williams, US Attorney for the Souther District of New York said in a statement. “We expect to move to unseal the indictment in the morning and will have more to say at that time”.

“The Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law”, Bahamas Prime Minister Philip Davis said in a statement.

“While the United States is pursuing its own criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigations into the FTX collapse, with continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere.”


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Sam Bankman-Fried, who goes by the name SBF, was head of the company that was valued at $47 billion before speculation FTX was running insolvent led to a liquidity crunch that ultimately brought down the exchange and has triggered a contagion effect throughout the world of cryptocurrency.

Despite accusation that Bankman-Fried defrauded FTX’s customers, he has remained in the public eye making public appearances from the Bahamas where his now bankrupt company was headquartered.

Two weeks ago, he appeared at a New York Times conference, where he said he “did not try to commit fraud on anyone”.

Last week, Sam Bankman-Freid agreed to front to a US House Committee and tweeted that he thought of himself “as a model CEO, who wouldn’t become lazy or disconnected”.


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“I’m sorry”, he said. “Hopefully people can learn from the difference between who I was and who I could have been”.

The sudden collapse of FTX impacted hundreds and thousands of people in the world who had funds on the exchange.

Meanwhile, following the collapse of FTX, Australia’s largest crypto exchange Swyftx has laid off third of its staff.

Current CEO of FTX John Ray III – who is administering the company through its bankruptcy – also oversaw the infamous Enron bankruptcy. In a statement to the same US House Committee SBF was set to appear in front of prior to his arrest, Ray said FTX was unique in just how shambolic the company’s management was.


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“Never in my career have I seen such an utter failure of corporate controls at every level of an organization, from the lack of financial statements to a complete failure of any internal controls or governance whatsoever”, he said.

“The FTX Group’s collapse appears to stem from the absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company that is entrusted with other people’s money or assets”.

About arrest of Sam Bankman-Fried, once of the cheated investors said, “I don’t think it is a coincidence that SBF was arrested and criminally charged the night before he was due to testify before Maxine Waters and the House Financial Services Committee. Not only could his testimony jeopardize the government’s case against him, but it could implicate others not yet charged, including some people that received so-called donations”.


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Meanwhile, commenting on crypto an analyst said, “The problem with Crypto, it is like an imaginary currency. It operates like the Federal Reserve where a handful of people decide value. A currency not based on a real metal or commodity is a lifeless item which is ripe for manipulation. Great for the people in power of it not so good for investors surrounding it. A currency should always have a real value this speculation is very dangerous.

“FTX, Voyager, Celsius and Luna proved that the Crypto industry is built by criminals and scammers and shouldn’t exist in the first place. There are also many crypto scammers such as YEM coin, Liberland merit etcetera.  Regulators need to shutdown the entire criminal enterprise”.

Mocking cryptocurrency, an individual named Michael said: “Who wants to buy my gold chocolate coins? They are really worth a lot and they get more valuable every day. I keep them where no one else can see them or know how to get them so don’t worry about security. Just listen to what I say, never mind what small-minded naysayers believe. My gold chocolate coins do what no crypto or legal tender can…when you lose your investment, which is certain, then you have chocolate coins to eat to feed your family”.

Crypto thugs in the Middle East

For the past couple of years, a large number of crypto scammers have flocked into a number of Middle Eastern countries including Bahrain and the United Arab Emirates. According to media reports, kingpin of YEM coin, Dan Settgast has succeeded in getting permanent residency in Bahrain, wherefrom he is running scandalous YEM Foundation and other crypto scam ventures. Similarly, there are crypto scammers such as Liberland merit, EcoX, EcoShumi Foundation etcetera which are openly operating from Dubai, while authorities are totally reluctant in taking any action against these criminals.

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