- Former FTX CEO signed the papers after declining to waive extradition on Monday.
- The Democratic Senate Majority PAC stated the $3 million received from Sam Bankman- Fried and Nishad Singh would be returned.
- The crypto market recovered over $20 billion in the last 24 hours, preventing the market capitalization from dropping below $750 billion.
The FTX collapse will go down as one of the biggest downfalls in the history of crypto. The now-bankrupt exchange’s founder, Sam Bankman-Fried, is bringing the saga to a close with his most recent decision as acquaintances protect themselves by severing ties with the former.
FTX and Sam Bankman-Fried gain $3 million
The former executive of FTX was arrested last week at the behest of the authorities in the United States, and his return to the country has been a matter of discussion since. While extradition was approved by both the Bahamas and the US, Bankman-Fried has been noted to be a “flight risk”, making extradition difficult. However, the accused has been far more eager to return to the States.
During a hearing on Monday, FTX’s founder declined to waive extradition, leaving the court and his lawyers confused. Since then, Bankman-Fried has been held in jail, awaiting a hearing on Wednesday to determine his extradition.
Upon Bankman-Fried’s return to the United States, the ex-CEO will be facing charges from both the Securities and Exchange Commission as well as the Commodity Futures Trading Commission.
However, those unwilling to be associated with FTX and its founder in any way are severing connections even before his return to the States.
The Democratic Senate Majority PAC announced that it would be returning all contributions made by the former FTX head and his associate and ex-head of engineering, Nishad Singh. Receiving $2 million from Bankman-Fried and another million dollars from Singh, the super PAC stated that it would be returning them at the earliest.
A PAC spokesperson told CNBC on December 20,
“Following the serious allegations against FTX, Senate Majority PAC previously set aside the contribution amounts from Sam Bankman-Fried and Nishad Singh with the intention of returning the funds once we receive proper direction from federal law enforcement officials based on their legal proceedings.”
The crypto market remains tumultuous
The total crypto market capitalization noted an increase of $20 billion in the last 24 hours after losing over $75 billion in the last week. The increase in market capitalization noted the value of all cryptocurrencies increasing from $753 billion to $773 billion.
Total crypto market capitalization
The crypto market still needs to gain over $53 billion just to recover its losses from this week. This rise would be crucial in initiating a recovery from the lost value from November 6 crash caused by FTX’s collapse.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.