- The Bahamian Office of the Attorney General indicated that investigations into the collapse of FTX would continue alongside the prosecution of SBF in the United States.
- The Bitcoin market lost its $19k support following the 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 filed criminal charges against SBF and now faces possible extradition. The arrest comes a day before SBF testified in front of the House Financial Services Committee.
Following the announcement, Bitcoin price has gained approximately 1.4 percent in the past 24 hours to trade at about $17,171. Nonetheless, Bitcoin’s price is $3,000 below its value before FTX and Alameda’s implosion. Moreover, over $450 million belonging to FTX customers and investors were never recovered after a suspicious hack last month.
Reportedly, SBF faces possible life imprisonment in the United States despite claims that the FTX US entity is fully solvent.
“As a result of the notification received and the material provided in addition to that, it was deemed appropriate for the Attorney General to seek SBF’s arrest and hold him in custody pursuant to our nation’s Extradition Act,” the statement, attributed to Attorney General Ryan Pinder, said. “At such time as a formal request for extradition is made, The Bahamas intends to process it promptly, pursuant to Bahamian law and its treaty obligations with the United States.”
The Bahamian Office of the Attorney General indicated that investigations into the collapse of FTX would continue alongside the prosecution of SBF in the United States. Additionally, other jurisdictions that the FTX implosion has significantly impacted have taken further steps to investigate the case independently.
Read more: BREAKING: SBF responsible for FTX and Terra Luna crash – Federal prosecutors investigate case
Will Bitcoin and Crypto Prices Rebound Following SBF Arrest?
The Bitcoin market lost its $19k support following the FTX and Alameda collapse. Moreover, other crypto companies directly invested in FTX, including BlockFi, have indicated possible collapse. As such, the cryptocurrency market, despite showing likely bullish sentiments, is not out of the woods yet.
The SBF and FTX case has been complicated by the fact that he donated around $40 million in the 2022 midterm elections. Making the matter 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 with a senate hearing following the arrest.
From a tactical perspective, I don’t understand why the U.S. government didn’t wait until after @SBF_FTX testified under oath before Congress tomorrow before charging him with a crime. Prosectors actually did #SBF a favor by saving him from himself.
— Peter Schiff (@PeterSchiff) December 13, 2022
Sell 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 it is on the precipice of filing for Chapter 11 bankruptcy protection.
Meanwhile, market strategists are closely monitoring Bitcoin’s weekly close and onchain data for clues on the next breakout. From a technical standpoint, the Bitcoin and crypto markets are at major crossroads that could lead to either further decline or a significant Christmas rally.