Sam Bankman-Fried Has Finally Been Arrested

Since the collapse of FTX, many of us, despite being armchair economists and cryptocurrency speculators, could see something wasn't right. There was criminal behaviour afoot, and SBF, under the guise of ignorance, was trying to weasel out of it. I got sick of talking about SBF until an exciting news headline compelled me to write about him again.

The headline on CNBC reads FTX founder Sam Bankman-Fried arrested in the Bahamas after U.S. files criminal charges. Merry Christmas!

_{^{Image credit: Bloomberg | Bloomberg | Getty Images}}

The news article reads:

after the United States Attorney for the Southern District of New York shared a sealed indictment with the Bahamian government, setting the stage for extradition

So, while on the surface it looked like SBF was getting away with his criminal behaviour, the authorities, to their credit, were probably compiling a list of evidence to get an indictment to extradite him to the U.S. Where he won't be met with kindness. I am surprised that things have moved so fast, to be honest. It took them much longer to get others convicted of financial crimes on this level.

Now, the question on everyone's lips is: is there enough evidence linking SBF to the collapse and proving fraud?

Fortunately, the books will provide some of the needed evidence. That's the beautiful thing about the blockchain, an immutable ledger of transaction data that cannot be changed after it's published. This legal case will show just how great blockchains are for financial accountability. SBF has also been singing like a canary in interviews and whatnot, so there will be a trove of evidence and statements that will ultimately be used against him.

Bankman-Fried does seem to think he genuinely did nothing wrong. This textbook narcissist even went against his lawyers' legal advice recently when he appeared during an interview at the Dealbook Summit. It highlights the arrogance of SBF; he believed he wouldn't be brought to justice for his crimes.

The speed at which the indictment was brought against SBF isn't a good omen for this fraudster. It means they have concrete evidence they believe can be used to convict him. My hunch is Caroline Ellison has turned against him (ex-CEO of Alameda Research and allegedly part of some weird sex poly circles). SBF did try throwing her under a freight train in an interview in November, which might not have been a smart move.

She has been allegedly spotted in New York and not detained, as well as lawyering up. If anyone knows anything about the inner workings or has information, it would be Ellison.

The legal system doesn't always get things right. But, I am hopeful that justice will prevail and SBF will go down for this in some way, shape or form. While those that lost their money might not have it returned, SBF going to jail might be a worthy financial substitute.

Posted Using LeoFinance ^Beta