2023-08-11 20:36:12
The founder of the bankrupt cryptocurrency platform FTX, Sam Bankman-Fried, has been arrested once more on charges of fraud. A federal judge in New York on Friday reversed the 31-year-old’s bail release, according to the court’s website. Prosecutors had argued that Bankman-Fried violated the terms of his bail and influenced witnesses.
FTX and the Alameda Research investment fund, also founded by Bankman-Fried, went bust in November, triggering an earthquake in the crypto world. Once hailed as a crypto prodigy, Bankman-Fried was later arrested in the Bahamas and extradited to the United States. The US judiciary accuses the 31-year-old of fraud, money laundering and violations of campaign finance laws.
Bankman-Fried was released from custody in December on $250 million bail. From then on he was under house arrest at his parents’ home in the state of California. Now, New York Judge Lewis Kaplan has ordered Bankman-Fried back behind bars pending trial.
Bankman-Fried had embodied the rise of cryptocurrencies to a supposedly serious investment like no other. However, in early November, the business construct collapsed when it was revealed that FTX was mainly holding its client funds in a specially issued cryptocurrency with no equivalent. On November 11, the company filed for bankruptcy.
1691786575
#FTX #founder #Sam #BankmanFried #arrested
