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Disgraced FTX scam artist Sam Bankman-Fried [not to be confused with women's baggage thief and now fired Biden appointee, Sam Brinton] had appeared in a Bahama court on Tuesday when he made it clear that he will fight extradition to the United States as he faces a load of federal charges that include fraud, money laundering and making illegal campaign contributions.
Bankman-Fried, 30, was the second highest Democrat donor.
While in a heavily guarded court in Nassau, Bahamas, the alleged crypto-scammer seemed relaxed and as creepy-nerdy as usual where he made it clear that he would not be waiving his right to an extradition hearing back in the US but it looks like the Democrats are worried about what he might say, so on Monday, Bankman-Fried was arrested in the Bahamas.
Bankman-Fried is accused of defrauding customers and investors to fund a lavish lifestyle, officials said. Federal prosecutors said that beginning in 2019, he diverted investors' money to cover expenses, debts and risky trades at his crypto hedge fund, Alameda Research, in addition to making lavish purchases and illegal campaign contributions without telling his customers, according to a 13-page indictment. He also gave his Arnold Stang lookalike girlfriend a large sum of money, which should mean that she too must testify on a criminal charge.
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| Not the grand daughter of Arnold Stang |
"All of this dirty money was used in service of Bankman-Fried's desire to buy bipartisan influence and impact the direction of public policy in Washington," Damian Williams, the U.S. attorney for the Southern District of New York, said during a news conference. [H/T Fox News]
He is charged with eight criminal offenses, ranging from wire fraud to money laundering to conspiracy to commit fraud. Williams called the case "one of the biggest frauds in American history."
Bankman-Fried was arrested by Bahamian authorities at the request of the U.S. government, a day before he was slated to testify before the House Financial Services Committee along with FTX's current CEO, John Ray III, not to be confused with the late singer by the same name.
He is charged with eight criminal offenses, ranging from wire fraud to money laundering to conspiracy to commit fraud. Williams called the case "one of the biggest frauds in American history."
Bankman-Fried was arrested by Bahamian authorities at the request of the U.S. government, a day before he was slated to testify before the House Financial Services Committee along with FTX's current CEO, John Ray III, not to be confused with the late singer by the same name.
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| Arnold Stang |
FTX filed for bankruptcy on Nov. 11 when the firm ran out of money after the cryptocurrency equivalent of a bank run. Customers tried to withdraw their assets all at once because of growing doubts about the financial strength of the company and Alameda Research. But alas, they were too late.
The criminal indictment against Bankman-Fried and "others" at FTX is on top of civil charges announced Tuesday by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission. The SEC alleges Bankman-Fried defrauded investors and illegally used their money to buy real estate on behalf of himself and his family. He allegedly bought his mommy a multi-million dollar mansion in the Bahamas.
The criminal indictment against Bankman-Fried and "others" at FTX is on top of civil charges announced Tuesday by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission. The SEC alleges Bankman-Fried defrauded investors and illegally used their money to buy real estate on behalf of himself and his family. He allegedly bought his mommy a multi-million dollar mansion in the Bahamas.
He executed "deliberate" transactions designed to cover up his fraud, authorities said.
Bankman-Fried was previously one of the world’s wealthiest people on paper; at one point his net worth reached $26.5 billion, according to Forbes. He was a prominent personality in Washington, donating millions of dollars toward mostly left-leaning political causes and Democratic political campaigns, though he also gave some money to Republicans.
FTX grew to become the second-largest cryptocurrency exchange in the world. The SEC complaint alleges that Bankman-Fried raised more than $1.8 billion from investors since May 2019 by promoting FTX as a safe, responsible platform for trading crypto assets. It was as safe as doing the Pencil Dance in a landmine field.
"Bankman-Fried's entire house of cards started to crumble as crypto asset prices plummeted in May 2022 and as Alameda's lenders demanded repayments on billions of dollars in loans," said Gurbir Grewal, director of the SEC's Division of Enforcement.
At Tuesday's congressional hearing, Ray, the new FTX CEO, bluntly disputed that at the hearing: "We will never get all these assets back."
Some folks are calling for Bankman-Fried to share a cell with Darrell Brooks, the Waukesha serial killer and self-declared sovereign citizen serving 6 life sentences plus more time for other crimes, if Bankman-Fried is found guilty, which is highly possible.
If so, he faces 115 years in the slammer while Brooks faces about ten times that amount.
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