FTX chief SBF arrested by Bahamian police
- The Bahamian Office of the Attorney General indicated that the investigation into the collapse of FTX would continue alongside the prosecution of SBF in the United States.
- Bitcoin market lost support at $19k after FTX and Alameda collapse.
A month after filing for Chapter 11 bankruptcy protection in the United States, former FTX CEO Sam Bankman-Fried (SBF) has been arrested by Bahamian law enforcement. According to the announcement, the United States has filed criminal charges against SBF and now faces possible extradition. The arrest comes a day before SBF testified before the House Financial Services Committee.
Following the announcement, the Bitcoin price has risen about 1.4 percent over the past 24 hours to trade at around $17,171. Nevertheless, Bitcoin’s price is $3,000 below its value before FTX and Alameda’s implosion. Also, over $450 million belonging to FTX customers and investors was never recovered after a suspicious hack last month.
SBF reportedly faces possible life imprisonment in the US despite claims that the FTX US unit is fully solvent.
“As a result of the notification received and the material provided in addition to it, it was deemed appropriate for the Attorney General to seek SBF’s arrest and detain him pursuant to our nation’s extradition laws,” the statement, attributed to Attorney General Ryan Pinder, said. “At the time a formal extradition request is made, the Bahamas intends to process it promptly, in accordance with Bahamian law and its treaty obligations with the United States.”
The Bahamian Office of the Attorney General indicated that the investigation into the collapse of FTX would continue alongside the prosecution of SBF in the United States. In addition, other jurisdictions significantly affected by the FTX implosion have taken further steps to independently investigate the matter.
Read more: BREAKING: SBF responsible for FTX and Terra Luna crash – Federal prosecutors investigate case
Will Bitcoin and crypto prices bounce back after SBF arrest?
Bitcoin market lost support at $19k after FTX and Alameda collapse. Also, other crypto companies directly invested in FTX, including BlockFi, have indicated possible collapse. As such, the cryptocurrency market, despite showing likely bullish sentiment, is not out of the woods yet.
The SBF and FTX matter has been complicated by the fact that he donated around $40 million in the 2022 midterm elections. What makes matters worse is that both sides of the political aisle received crypto donations from SBF.
As such, some market strategists believe SBF has been saved from public humiliation. Furthermore, SBF lawyers are less likely to agree to a Senate hearing after the arrest.
From a tactical perspective, I don’t understand why the US government didn’t wait until afterwards @SBF_FTX testified under oath before Congress tomorrow before charging him with a felony. Indeed, prosectors did #SBF a favor by saving him from himself.
— Peter Schiff (@PeterSchiff) 13 December 2022
The selling pressure in the crypto market is predicted to sustain in the first quarter of 2023 as miners attempt to regain healthy cash flow. Furthermore, Argo Blockchain, a major Bitcoin mining facility, has announced that it is on the verge of filing for Chapter 11 bankruptcy protection.
Meanwhile, market strategists are monitoring Bitcoin’s weekly close and onchain data for clues about the next breakout. From a technical standpoint, the Bitcoin and crypto markets are at major crossroads that could lead to either further declines or a significant Christmas rally.
