Sam Bankman-Fried, the former CEO of FTX, Gary Wang, the co-founder, and Nishad Singh, the director of engineering, are believed to be in the Bahamas and are “under supervision” by the local authorities.
According to a Cointelegraph source, the three former FTX executives and Alameda Research CEO Caroline Ellison are searching for ways to escape to Dubai because that country “doesn’t have any extradition treaties.”
Extradition is the process by which one state, at the request of another, forces the return of a person for prosecution for a crime that was committed outside the state of refuge and is illegal under the rules of that state.
In layman’s terms, SBF and his associates are fleeing to Dubai so the laws of the United States can’t touch them.
The insider, who requested anonymity, said: “Right now, three of them, Sam, Gary, and Nishad, are under supervision in the Bahamas. This means that it will be impossible for them to escape.”
According to the source, Ellison is currently in Hong Kong, which means “she might be able to get to Dubai.”
Why SBF and his associates are trying to escape?
SBF is at the center of the crypto industry’s biggest scandal. FTX and Alameda Research’s shady practices were revealed over the past few days.
Binance had planned to acquire FTX earlier this week to help them out. However, they soon realize that FTX has more serious problems than just the liquidity crunch. FTX then declared bankruptcy and was reportedly hacked yesterday.
With all these issues revolving around FTX and users being pissed at them, SBF is in big trouble.
According to a Wall Street Journal report on November 9, the US Department of Justice and the Securities and Exchange Commission may be looking into the collapse of the cryptocurrency exchange.
Besides that, On November 10, the California Department of Financial Protection and Innovation (DFPI) said that it will begin an investigation into the “apparent failure” of the exchange.