CAPTURED: Crypto con feeling the long arm of U.S. law

CAPTURED: Crypto con feeling the long arm of U.S. law

Karma has finally caught up with the man formerly known as the Crypto King, Samuel Bankman-Fried. The former co-CEO of FTX was arrested by Bahamian authorities after the United States filed criminal charges against the disgraced billionaire — just a day before he was scheduled to testify in front of the House Financial Services Committee.

A statement from the Southern District of New York’s United States Attorney’s office confirmed that a federal indictment prompted the arrest.

“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Friend at the request of the U.S. Government, based on a sealed indictment filed by the SDNY,” United States Attorney attorney Damian Williams said, according to a tweet from the office’s official website.

Read the Bahamas’ official statement below.

SBF, as he’s commonly referred to, was wanted for questioning by both the House and Senate about the collapse of his company, which left it $32 billion in the red – and left millions of clients holding the bag.

Though Bankman-Fried agreed to testify virtually and, under oath, before the House, he refused the Senate Banking Committee’s request.

“Giving that Bankman-Fried’s counsel has stated they are unwilling to accept service of a subpoena, we will continue to work to have him appear before the Committee,” Chairman Sen. Sherrod Brown (D-OH) and Sen. Pat Toomey (R-PA), said in a statement, The Hill reported. “He owes the American people an explanation.”

The cryptocurrency grifter allegedly misappropriated customer deposits by directing them to his fledgling company, Alameda Research – something FTX assured its customers wouldn’t happen.

Lack of corporate oversight and mismanagement of finances are just some of the accusations lobbed at the ex-CEO, who’s feigned ignorance of the inner workings of both FTX’s and Alameda’s operations.

With the company now bankrupt, FTX’s new Chief Executive, John J. Ray III, condemned the operations of the company, saying:

“Never in my career have I seen such a complete failure of corporate controls, and such a complete absence of trustworthy financial information as occurred here,” according to The Daily Beast.

Bankman-Fried left the United States and now resides in the Bahamas. The former billionaire claims to have just $100,000 left to his name, still considerably more than the yearly earnings of an average American.

Attorney General of the Bahamas, Sen. Ryan Pinder KC, released a statement on SBF’s arrest on Monday by the Royal Bahamas Police.

“While the United States is pursuing criminal charges against BF individually, The Bahamas will continue its own regulatory and criminal investigations into the collapse of TX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere,” the statement read.

Bahamas Prime Minister Edward “Brave” Philip Davis, also weighed in:

“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.”

Bankman-Fried recently appeared in an interview where he admitted to the host that nearly $40 million was secretly donated to the Republican party – contributions otherwise known as “dark money.”

In mid-November, the shameless scammer was named in a class action suit along with celebrities who endorsed the crypto exchange — including Tom Brady, his soon-to-be ex-wife Gisele Bundchen and Larry David — by investors claiming to have lost $11 billion.

Apparently, the now hundred-thousand-dollar king has reached the find-out portion of his shenanigans.

Original reporting by Noah Kirsch and AJ McDougall at The Daily Beast.

Follow Ty Ross on Twitter @cooltxchick

Ty Ross

News journalist for Washington Press and Occupy Democrats.