By: Emma Simon
FTX was one of the most prolific cryptocurrency companies until a run on deposits exposed an $8 billion hole in the business. However, Ms. Bankman-Fried was arrested in his apartment in the Bahamas on December 12th. This arrest is the first move by the government to hold the company accountable for its collapse. It is estimated that at this time, at least one million depositors cannot access their funds. The charges against Mr. Bankman-Fried include wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy, and money laundering. However, at a recent New York Times event, Mr. Bankman-Fried said that "huge management failures" and careless accounting caused the collapse, even stating that he "did not ever try to commit fraud." The FTX founder will appear in magistrate court in Nassau, Bahamas, on Tuesday. The Bahamas and the United States government have had an extradition treaty in place since the early 20th century, so the public can expect that the two countries will closely cooperate in the proceedings following the company's bankruptcy and Mr. Bankman-Fried's arrest. Prime Minister Philip Davis says, "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." Mr. Bankman-Friend has recently agreed to his extradition to the United States.
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