Crypto founder Sam Bankman-Fried's indictment to be unsealed

Crypto founder Sam Bankman-Fried's indictment to be unsealed

Prosecutors to unseal the same day indictment to Tell Congress what went wrong at the exchange, according to the New York Times.

One month after FTX, the No. 2 crypto exchanges worldwide collapsed due to accusations of self-dealing, police in the Bahamas arrested its co-founder and former CEO, Sam Bankman-Fried, at the request of U.S. prosecutors.

In a tweet Monday night, the U.S. attorney in Manhattan, Damian Williams, said Bahamanian officials acted on his office's request and that prosecutors said Tuesday they plan to unseal an indictment against the 30-year-old entrepreneur.

The island nation's attorney general's office said it would not comment on whether the island's attorney general is in any way responsible.

The office said Bank-Fried's extradition to the U.S. will be completed soon, a spokesman said.

Ray said he plans to describe how FTX did not maintain records of its transactions and 'comingled assets' between the exchange and Alameda Research, which also controlled the crypto hedge fund Bankman-Fried.

Senior management had access to stored customer assets such as crypto tokens, Ray said, without security controls to prevent redirecting those assets. He also plans to provide details on how Alameda borrowed money held at FTX for its own trading or investments 'without effective limits' and had a lack of documentation for transactions involving almost 500 investments made with FTX's assets and assets.

The U.S. Securities and Exchange Commission is also planning to file a civil lawsuit against Bankman-Fried.

The swiftness of criminal action in the FTX case is unpredictable. One of its most renowned champions filed for bankruptcy in early November, converting up to 1M customers into creditors.

The resolvency of FTX and Alameda came under fire after news broke that 40% of the hedge fund's balance sheet relied on FTX's homegrown token, FTT. The revelation led to questions about Alameda's financial position and led Binance to announce it would sell off $500 million worth of FTT, which it acquired as an early investor ion FTX. FTX was effectively insolvent after the move, resulting in a wave of withdrawals.

FTX filed for Chapter 1d1 bankruptcy and SBF resigned as CEO on Nov. 11 after $10B in customer assets were identified as missing from the platform.

Bankman-Fried has denied the accusations that he did not knowingly defraud customers but made honest mistakes.