Crypto Now Has Everyone’s Attention As SBF Shutdown, FTX Mess Unfolds

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Artwork: Brendan Lynch/Axios

The only thing going faster than this year’s crypto meltdown is its aftermath.

Why it matters: Authorities, courts and lawmakers who for years have largely watched the industry’s rapid growth from behind the scenes, are now scrambling to get involved as confidence in the industry s collapses and new shoes fall.

Latest: Sam Bankman-Fried, whose face has become synonymous with crypto, was charged today with eight counts of fraud, conspiracy, campaign finance violations and money laundering.

Just a day earlier, the FTX founder was preparing for a remote appearance before the House Financial Services Committee.

The Plot: He was arrested Monday night by Bahamian authorities at the request of the US government. But it took another part of the US government completely by surprise.

“My team and I have worked diligently over the past month to secure Mr. Bankman-Frieds’ testimony before our committee tomorrow morning,” committee chair Maxine Waters (D-CA) said in a statement. SBF was still scheduled to appear, “but then he was arrested,” Waters added.

The timing of the arrest was “dictated by law enforcement,” U.S. Attorney Damien Williams told a news conference.

Meanwhile, a battle escalates between FTX’s US bankruptcy team and authorities in the Bahamas: both claim jurisdiction and openly accuse the other of foul play. US regulators also jumped into the fray today.

The SEC filed a civil suit, while the CFTC accused SBF and its companies of fraud, in connection with the loss of more than $8 billion in FTX client deposits.

The Bottom Line: Crypto, a once misunderstood corner of finance, is now commanding everyone’s attention.

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