According to The New York Times, Sam Bankman-Fried is being extradited to the United States to face charges of facilitating unlicensed funds transmission.
Bankman-Fried, also known as SBF is accused of being involved in Alameda Research, which is a cryptocurrency trading platform that allegedly executed over $1 Billion worth transactions without a money transmitter licensing. This is against U.S. law.
The CEO, who is dual-citizen of the U.S.A and Singapore, was taken into custody in Singapore on Dec 19th.
Concerns have been raised in the cryptocurrency community about Bankman-Fried’s possible extradition and arrest. FTX has a significant trading volume of more than $20 billion per day. Although it is not clear what the implications of Bankman-Fried’s conviction is for FTX, some speculate that financial penalties could be imposed on the company or that they may be forced to close down.
This is a sign of the need to regulate the cryptocurrency industry. Companies like Alameda Research or FTX are continuing to operate without proper licensing. In the coming months, we will closely monitor the outcome of this case.