FTX’s Sam Bankman-Fried Arrested in Bahamas, Will be Extradited to the U.S. to Face Criminal Charges. SEC and CFTC Also Bring Charges
The Bahamian Authorities arrested Founder and Former FTX CEO Sam Bankman-Fried at the request of the U.S. Government on the evening of December 12th for potential charges of wire fraud, securities fraud, and money laundering. Bankman-Fried was set to testify at the U.S. Financial Service House Committee Hearing on the FTX collapse to provide answers to Members of Congress and the American people but will instead be making an appearance in Bahamian court. It’s expected that the U.S. will request Bankman-Fried’s extradition to the U.S., as they have formally filed criminal charges against him. The SEC has also brought its own set of allegations against the company for defrauding investors.
U.S. Department of Justice AML investigation into Binance Wraps Up with Uncertain Conclusion
According to Reuters, The U.S. Department of Justice is split over charging Binance regarding as part of its five-year AML investigation; some members believe sufficient evidence has surfaced to justify indictments, whereas others have cautioned for supplementary information before reaching a decision. Such a criminal prosecution has high stakes for the cryptoasset industry, considering Binance’s dominant industry position. It is unclear at this point if the investigation will end in indictments, a settlement, or a closed case with no action.
Potential Big-Name Buyer for Discounted Crypto Investments: Goldman Sachs
Goldman Sachs has emerged as a possible fire-sale buyer of heavily discounted crypto investments in the post-FTX implosion era with an estimated wallet size in the “tens of millions.” Goldman’s willingness to invest amid an industry shakeout bodes well for the continued growth and support from institutional players in the industry.
Coinbase Incentivizes USDC Conversion: A Jab at Tether (USDT)
Coinbase announced a zero-fee conversion cost to switch from USDT to a so-called “trusted stablecoin” (their word) in USDC. This campaign is a direct jab at USDT, which has been subject to its fair share of controversial rumblings surrounding its reserves. This stablecoin war between these top two stablecoins by market capitalization is rejuvenated, and it will be interesting to see if investor perception is shared at all based on this campaign.