- Sam Bankman-Fried, 30, may be brought back to the States by authorities
- Bankman-Fried was worth an estimated $16 billion before the crisis but his fortune is down 94%
- For some, the events are reminiscent of the failures of Wall Street firms during the 2008 financial crisis
- FTX filed for bankruptcy protection Friday and some crypto firms might follow
- BlockFi, which halted withdrawals, is now considering bankruptcy too
American and Bahamian authorities are discussing the possibility of bringing FTX founder Sam Bankman-Fried to the United States for questioning, Bloomberg News reported on Tuesday, citing three people familiar with the matter.
SBF’s collapsed crypto exchange FTX, which filed for bankruptcy in the United States last week, has fanned fears about the future of the crypto industry after it outlined a ‘severe liquidity crisis’.
Since then regulators have opened investigations and lawmakers have called for clearer rules on how the industry operates.
Several crypto firms have also been bracing for a fallout of the FTX collapse with several counting their exposure in millions to the beleaguered exchange. BlockFi halted withdrawals over the weekend and is considering bankruptcy.
A spokesperson for the Manhattan U.S. Attorney’s office declined to comment on the matter. FTX did not immediately respond to a Reuters request for comment.
Bankman-Fried has listed his five-bedroom Bahamas penthouse on the market for $40 million.