HomeBusinessThe founder was arrested after world's 2nd largest Crypto Exchange went bankrupt

    The founder was arrested after world’s 2nd largest Crypto Exchange went bankrupt

    Bahamas attorney general has said that country’s police have arrested Sam Bankman Fried, the founder of cryptocurrency exchange FTX.

    The Bahamas said it had received formal notice from the United States of the criminal charges filed against Bankman-Fried and was arrested accordingly.

    Bankman, a world-famous businessman, was arrested due to the bankruptcy of the cryptocurrency exchange he created.

    There, Fried has falsely claimed that this exchange is at a successful level. He was accused of having faked data to show that his cryptocurrency exchange was successful and that investing in it was very profitable.

    However, last month FTX filed for bankruptcy in the US, leaving many users unable to withdraw their funds.

    It was the second largest crypto exchange in the world and exchanged around $10 billion worth of cryptocurrencies daily.

    Meanwhile, in a series of interviews and public appearances in recent weeks, Bankman-Fried has acknowledged wrongdoing at his firm but tried to distance himself from allegations of illegal activity.

    “I never tried to commit fraud,” he said at the New York Times Dealbook conference late last month.

    FTX filed for bankruptcy on November 11 after users withdrew US$6 billion from the exchange in three days.

    Following the bankruptcy filing, Fried also resigned as CEO of FTX.

    However, according to a court filing last month, FTX owed nearly $3.1 billion to its 50 largest creditors.

    Bitcoin has also lost more than 60% of its value this year, while other cryptocurrencies have also fallen.

    Fried was once considered a younger version of the legendary US investor Warren Buffett, whose net worth was estimated at more than $15 billion as of late October.

    He was also known for donating heavily to political causes in Washington, DC.

    Join our WhatsApp Group to get the latest News Updates right into your device.

    What do you think?