Former FTX CEO Sam Bankman-Fried will not be able to testify in this week’s Congress hearing as expected following news of his sudden arrest along with the criminal charges filed against him.
SBF Arrested & Charged
Officials from both the United States and The Bahamas have recently confirmed that FTX’s former chief Sam Bankman-Fried or SBF, has been arrested by The Royal Bahamas Police Force at the request of U.S. authorities.
According to the New York Times, US prosecutors for the Southern District of New York have charged SBF with a number of criminal charges including wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy, and money laundering.
USA Damian Williams: Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. Government, based on a sealed indictment filed by the SDNY. We expect to move to unseal the indictment in the morning and will have more to say at that time.
— US Attorney SDNY (@SDNYnews) December 12, 2022
Bahamas Officials have also revealed that they will continue their own criminal investigation into FTX’s activities.
“While the United States is pursuing criminal charges against SBF individually, the Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere,” Bahamas Prime Minister Philip Davis, said in a statement.
SEC Filing Additional Charges
In addition, U.S. Securities and Exchange Commission (SEC) have also noted that they too are currently looking at filing a case against SBF, tweeting “The SEC has authorized separate charges relating to his violations of securities laws, to be filed publicly tomorrow in SDNY.”
Gurbir Grewal: We commend our law enforcement partners for securing the arrest of Sam Bankman-Fried on federal criminal charges. The SEC has authorized separate charges relating to his violations of securities laws, to be filed publicly tomorrow in SDNY. https://t.co/ON0LgY4mf4
— U.S. Securities and Exchange Commission (@SECGov) December 13, 2022
With SBF having been recently arrested and charged, he will now no longer be able to attend the December 13th hearing before the U.S. House of Representatives Committee on Financial Services.
“I am surprised to hear that Sam Bankman-Fried was arrested in the Bahamas at the direction of the United States Attorney for the Southern District of New York. The public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity.” Rep. Maxine Waters said.