For many customers burned by the whirlwind collapse of FTX, the arrest of founder Sam Bankman-Fried offered them the chance to take a brief sigh of relief—but not much more.
Prosecutors and regulators alleged this week that Mr. Bankman-Fried stole billions of dollars from FTX customers in one of the biggest financial frauds in American history. Much of the money, they said, propped up trading firm Alameda Research, also largely owned by Mr. Bankman-Fried.
“I was delighted to hear it,” said FTX customer Mark Miller, after learning of Mr. Bankman-Fried’s arrest. “But I’m still very skeptical. I don’t know what’s going to come of it.”
Mr. Bankman-Fried appeared in court Tuesday in the Bahamas, where he ran the now-bankrupt crypto exchange. He was denied bail and has been remanded to jail until Feb. 8, The Wall Street Journal previously reported. The Securities and Exchange Commission and the Commodity Futures Trading Commission also filed lawsuits against Mr. Bankman-Fried this week.
