The change allegedly gave Sam Bankman-Fried’s hedge fund a “virtually unlimited line of credit.”
, the fallen crypto king who presided over the fiery $32 billion implosion of FTX last month, was arrested by Bahamian authorities Monday after he was indicted in the U.S.planned testimony before CongressA Twitter account for the U.S. Attorney for the Southern District of New York confirmed the the wunderkind’s arrest, saying it was “based on a sealed indictment filed by the SDNY.”
He likely would have faced questions about alleged financial shenanigans that took place at FTX, including whether the company improperly shifted customers’ funds to bail out his crypto trading firm, Alameda Research.on Monday, Bankman-Fried said he was pressured into naming a new chief executive for FTX—John J. Ray III—in early November by lawyers advising the company at the time.
that she was “surprised” to hear of the arrest, the timing of which she added “denies the public” an opportunity to get answers. During an interview on Twitter Spaces on Monday, Bankman-Fried said he intended to appear before the House via Zoom from the Bahamas, but claimed he was not coming to the U.S. only because of the “paparazzi.”The disgraced ex-billionaire—who claims he now has just one bank account with about $100,000 in it—has professed ignorance over the specifics of Alameda’s operations, suggesting that he will try to cast blame on other executives for the debacle.
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