Sam Bankman Fried has been arrested. The founder of the bankrupt crypto company FTX is currently languishing in a Bahamas prison. Apparently, his own friend who contributed to his downfall.
Days before FTX's bankruptcy filing last month, co-CEO Ryan Salame disclosed to Bahamian authorities that Bankman may have been fraudulently sending FTX customer money to another of his companies, Alameda Research.
Quoted by us from CNBC, Salame considered that there was a possibility of mishandling of client assets by Bankman. The document from Salome is dated November 9, and was sent from the Bahamas Securities Commission to police. FTX declared bankruptcy on November 11.
This was the first public revelation that an insider had defected from Bankman-Fried. Salame told regulators that only three people at FTX - Bankman-Fried, Nishad Singh and Gary Wang - had access and authority to engineer the transfer to Alameda.
Salame's LinkedIn profile says he lives in the Bahamas and has multiple residences in the US. It's unclear what the current status is.
Sam Bankman-Fried himself was so successful when his FTX crypto trading company soared, that he once had a fortune of USD 32 billion. Now he is caught by the police and thrown in a prison that is called disgusting.
As reported, Bankman was accused of embezzling FTX customer funds for spree and investment in another company, Alameda Research. Currently, he is being held in a Bahamas prison which is known to be infested with rats and maggots, so bad that the wardens have labeled him 'unfit for humans'.
To be precise, Bankman was held in Nassau's only penitentiary, Fox Hill Prison to be exact, until at least February 8 after failing to secure bail while fighting extradition to the United States. Bankman had been living in the Bahamas.