^{Arrested in the Bahamas: Sam Bankman-Fried. Pic Bloomberg}

ICSM Business News: Ian Carrotte’s warning over fraudulent FTX cryptocurrency exchange is vindicated as the founder Bankman-Fried is arrested in the Bahamas and charged in a New York court

By Harry Mottram: Long before the collapse of the FTX cryptocurrency exchange this autumn ICSM smelled a rat. When the values related to the exchange’s cryptocurrency partners dropped ICSM’s Ian Carrotte suspected something was wrong.

“We have a fairly jaundiced view of hyperbole when it comes to cryptocurrency,” he said, “ICSM has a view that like betting only invest in them with what you can afford to lose. Around 80,000 UK citizens were swept up with the hype around FTX and around the world the figures run into hundreds of thousands. It is likely they won’t see a penny now after the pack of cards collapsed.”

Former the billionaire CEO of FTX and hedge fund Alameda Research Sam Bankman-Fried, 30, known as ‘The King of Crypto’ has been arrested on financial charges at his retreat in the Bahamas. The USA will press for the Californian’s extradition where he faces eight charges from a court in New York. These are:

Conspiracy to Commit Wire Fraud on Customers

Wire Fraud on Customers

Conspiracy to Commit Wire Fraud on Lenders

Wire Fraud on Lenders

Conspiracy to Commit Commodities Fraud

Conspiracy to Commit Securities Fraud

Conspiracy to Commit Money Laundering

Conspiracy to Defraud the United States and Violate Campaign Finance Laws

The amount of cash that has disappeared runs into billions of dollars with many people and small businesses in the UK caught up in the investment scam while some of his backers are owed more than a billion dollars.

Bankman-Fried touted for businesses to invest in his cryptocurrency empire which funded his $250 million property portfolio as well as allowed him to make unregulated loans to friends, politicians and associated companies using cash from the investment scheme.

He has denied fraud but cited inexperience in handling a multi-billion pound organisation. Whether that will wash with lawmakers in America is open to conjecture.

_{John Jay Ray III Pic BBC}

Ian Carrotte who is a veteran of giving warnings to ICSM members over insolvent companies said that there was relief that the USA lawyer John Jay Ray III is to take on the job of finding where the money went and what happened. He went after those responsible for the enron fiasco and earned a reputation for successfully fighting for money to repay creditors including banks who took part in that fraud.

“It’s an old phrase,” said Ian Carrotte, “but if something is too good to be true then it isn’t. What Bankman-Fried was promising investors was fantasy stuff – get rich quick. Some say it was a Ponzi scheme – but it’s a essentially an old fashioned fraud using the latest technology.”

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ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk