Sam Bankman-Fried (SBF), the former CEO of the exchange FTX, was formally arrested by the Royal Bahamas Police this morning (13). The US Securities and Exchange Commission (SEC) issued an announcement earlier, formally filing a lawsuit against SBF, accusing him of planning fraud through FTX and violating the anti-fraud provisions of the Securities Exchange Act.
Caroline may cooperate with the prosecution to identify SBF
Another important person involved in the whole incident, Alameda's former CEO Caroline Ellison, reported earlier that she might cooperate with the prosecutor and appear in court to identify SBF! According to the latest report from Coingape, FOX Business Channel reporter Charles Gasparino said: The legal community speculates that Caroline is looking for a defense lawyer, and the candidate is likely to be WilmerHale, a law firm closely related to the Manhattan U.S. Attorney's Office.
The law firm is known for its plea deals. If the news is true, then Caroline is likely to cooperate with the prosecution and SBF. In addition, John E. Deaton, the lawyer representing XRP in the Ripple and SEC case, also hinted:
Authorities didn't need much help to convict SBF of wire fraud and other charges; however, to prove the money laundering charges, the court needed Caroline's cooperation and testimony.
Compared with SBF's recent interviews, Caroline appears to be very low-key. Except for being witnessed in a coffee shop in Manhattan, New York, it is almost impossible to get any news about her on the community.
Bahamas says it will cooperate with U.S. extradition request
In addition, according to an earlier report from the Action Zone, the Attorney General of the Bahamas stated that the authorities will choose to cooperate with "the extradition of SBF" after receiving a formal notification from the United States. CNBC also quoted legal experts as reporting that if the U.S. federal government pursues charges of wire transfer or bank fraud, SBF could face life in prison without the possibility of parole.
