Sam Bankman-Fried’s arrest in the Bahamas on Monday marks the beginning of a new chapter in the FTX saga, one that will pit the former crypto billionaire against the Southern District of New York.
The indictment is expected to remain sealed until Tuesday morning. U.S. prosecutors haven’t commented, and neither the Attorney General of the Bahamas nor the Royal Bahamas Police Force would confirm the nature of the charges against Bankman-Fried.
The New York Times reported that the charges against Bankman-Fried included conspiracy to commit wire fraud and securities fraud, as well as standalone charges of securities fraud, wire fraud and money laundering.
The SEC has initiated a separate set of charges against Bankman-Fried, relating to “violations of our securities laws, which will be filed publicly tomorrow in the Southern District of New York,” enforcement director Gurbir Grewal said in a statement on Monday.
A spokesperson for the SEC declined further comment.
The charges could land Bankman-Fried in prison for decades, legal experts told CNBC. But before he ever serves time, U.S. prosecutors have to secure an extradition from the Bahamas back to New York.
An effort to extradite
“It is inconceivable to me that the Justice Department would have charged this case unless they were confident that they could extradite him,” Renato Mariotti, a former federal prosecutor, told CNBC.
Mariotti anticipates an extradition will take weeks to complete.
“The statement by the Bahamian government suggests that they’re going to cooperate,” Mariotti said.
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The U.S. and the Bahamas have had an extradition treaty in place since 1931, with the most recent iteration codified in 1990. Because Bankman-Fried hasn’t been convicted in the Bahamas yet, U.S. prosecutors had to secure an arrest warrant and provide sufficient evidence to the Bahamians that he had committed a crime.
Extradition is the first step in a process that could take years to finish. Given the magnitude of Bankman-Fried’s alleged crimes, prosecutors and regulators will be pursuing concurrent cases around the world.
A trial in the U.S. “may not occur for years,” Mariotti said.
“The more that they charge, the bigger that the case is, the more time they’re going to need to get in motion,” he said. “I would say late 2023 is the earliest a trial would occur.”
Prosecutors could argue that FTX breached its fiduciary duty by allegedly using customer funds to artificially stabilize the price of the company’s self-issued FTT coin, Mariotti said.
Intent is also a factor in fraud cases, and Bankman-Fried insists he didn’t know about potentially fraudulent activity. He told CNBC’s Andrew Ross Sorkin at the New York Times DealBook conference that he “didn’t knowingly commingle funds.”
“I didn’t ever try to commit fraud,” Bankman-Fried said.
In prepared testimony for the House Financial Services committee, new FTX CEO John Ray confirmed that commingling of funds had occurred between FTX and Alameda Research, Bankman-Fried’s hedge fund.
Other legal trouble
Beyond the criminal charges set to be unveiled Tuesday morning, Bankman-Fried is also facing civil action, which could be brought by the SEC, the Commodity Futures Trading Commission and state banking and securities regulators, said Richard Levin, who chairs the fintech and regulation practice at Nelson Mullins Riley & Scarborough.
The CFTC and lawmakers have begun their probes into FTX and Bankman-Fried, who told Sorkin he was down to his last $100,000.
Shortly after Bankman-Fried’s arrest, the SEC appeared to confirm that the agency would pursue a separate set of charges from the criminal indictment.
Lawmakers also expressed their satisfaction at Bankman-Fried’s arrest. Senator Sherrod Brown (D-Ohio), who chairs the Senate Committee on Banking, Housing, and Urban Affairs, applauded both the Justice Department and Bahamian law enforcement “for holding Sam Bankman-Fried accountable.”
Rep. Maxine Waters (D-Calif.), the chairwoman of the House Financial Services Committee, echoed that sentiment, but expressed disappointment that Bankman-Fried was arrested before his House testimony, which was scheduled for Tuesday.
“I am surprised to hear that Sam Bankman-Fried was arrested in the Bahamas at the direction of the United States Attorney,” Waters said in a statement.
“[The] American public deserves to hear directly from Mr. Bankman-Fried about the actions that’ve harmed over one million people,” Waters continued.
Bankman-Fried had also been invited to appear before the Senate prior to his arrest. That hearing will occur on Wednesday.
It’s unclear whether the SEC or the CFTC will take the lead in securing civil damages.
“The question of who would be taking the lead there, whether it be the SEC or CFTC, depends on whether or not there were securities involved,” Mariotti told CNBC.
SEC Chairman Gary Gensler, who met with Bankman-Fried and FTX executives earlier this year, has said publicly that “many crypto tokens are securities,” which would make his agency the primary regulator.
But many exchanges, including FTX, have crypto derivatives platforms that sell financial products like futures and options, which fall under the CFTC’s jurisdiction.
“For selling unregistered securities without a registration or an exemption, you could be looking at the Securities Exchange Commission suing for disgorgement — monetary penalties,” said Levin, who’s represented clients before both agencies.
Investors who have lost their savings aren’t waiting. Class-action suits have already been filed against FTX endorsers, like comedian Larry David and football superstar Tom Brady. One suit excoriated the celebrities for allegedly failing to do their “due diligence prior to marketing [FTX] to the public.”
FTX’s industry peers are also filing suit against Bankman-Fried. Failed lender BlockFi sued Bankman-Fried in November, seeking unnamed collateral that the FTX founder provided for the crypto lending firm.
FTX and Bankman-Fried had previously rescued BlockFi from insolvency in June, but when FTX failed, BlockFi was left with a similar liquidity problem and filed for bankruptcy protection in New Jersey.
Bankman-Fried has also been sued in Florida and California federal courts. He faces class-action suits in both states over “one of the great frauds in history,” a California court filing said.
The largest securities class-action settlement was for $7.2 billion in the Enron accounting fraud case, according to Stanford research. The possibility of a multibillion-dollar settlement would come on top of civil and criminal fines that Bankman-Fried faces.
A life behind bars
If the DOJ were able to secure a conviction, a judge would look to several factors to determine how long to sentence him.
Based on the size of the losses, if Bankman-Fried is convicted on any of the fraud charges, he could be behind bars for years — potentially for the rest of his life, said Braden Perry, a partner at Kennyhertz Perry who advises clients on anti-money laundering, compliance and enforcement issues.
But the length of any potential sentence is hard to predict, said Perry, who was previously a senior trial lawyer for the CFTC, FTX’s only official U.S. regulator.
Federal sentencing guidelines follow a numeric system to determine the maximum and minimum allowable sentence, but the system can be esoteric. The scale, or “offense level,” starts at one, and maxes out at 43.
A wire fraud conviction rates as a seven on the scale, with a minimum sentence ranging from zero to six months.
But mitigating factors and enhancements can alter that rating, Perry told CNBC.
“The dollar value of loss plays a significant role. Under the guidelines, any loss above $550 million adds 30 points to the base level offense,” Perry said. FTX customers have lost billions of dollars.
“Having 25 or more victims adds 6 points, [and] use of certain regulated markets adds 4,” Perry said.
That means Bankman-Fried could be facing life in federal prison, without the possibility of supervised release, if he’s convicted on just one of the offenses that prosecutors will reportedly pursue.
If convicted, his sentence could be reduced by mitigating factors.
“In practice, many white-collar defendants are sentenced to lesser sentences than what the guidelines dictate,” Perry said. Even in large fraud cases, that 30-point enhancement previously mentioned can be considered punitive.
By way of comparison, Stefan Qin, the Australian founder of a $90 million cryptocurrency hedge fund, was sentenced to more than seven years in prison after he pleaded guilty to one count of securities fraud.
Ford is doubling down on lower-cost electric vehicles for the future. That could now include its luxury Lincoln brand. According to Ford’s CEO, Jim Farley, an affordable Lincoln EV “would make sense,” but there’s more to it.
Is Ford launching an affordable Lincoln EV?
Earlier this month, Farley introduced the new Ford EV Universal Platform, which will power its upcoming lineup of more affordable electric cars.
Farley said during the event (see our recap) at Ford’s plant in Kentucky that the Company took “a radical approach to a very hard challenge: Create affordable electric vehicles that delight customers in every way that matters.”
Does that include the luxury Lincoln brand? According to Farley’s latest comments, it could actually be a possibility.
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During an exclusive interview with Hagerty, Ford’s CEO said, “an affordable EV Lincoln” would make sense. Farley explained that although electric vehicles offer a superior driving experience with a nearly silent ride, the brand isn’t ready to commit to electrification fully.
CEO Jim Farley presents the Ford Universal EV Platform in Kentucky (Source: Ford)
“The team really pushed me to have an all-electric lineup, and I refused to do it,” Farley said. Instead, he sees Lincoln’s future lineup with traditional gas-powered models, hybrids, and extended-range EVs, or EREVs.
“EREV would be a perfect drivetrain for us. All-hybrid and EREV lineup, and maybe a few electric cars, but more on the affordable side,” Farley explained.
Lincoln Nautilus (Source: Lincoln)
An affordable hybrid isn’t likely, “but an affordable EV Lincoln,” Farley added, “with over-the-top color choice and over-the-top interior customization would make sense.”
Electrek’s Take
An affordable EV with “over-the-top” customization sounds like it could be pricier than what you’d expect. Lincoln has yet to launch an all-electric vehicle, while new luxury EV brands, such as Lucid and Rivian, are ramping up their output.
Ford already cancelled its three-row electric SUV, opening the door for Hyundai, Kia, and others to take advantage with the IONIQ 9 and EV9.
An affordable Lincoln EV could challenge the upcoming midsize models from Lucid and Rivian, which promise to be lower-priced but just as advanced, if not more advanced, than its current vehicles.
GM’s Cadillac claims to be the “luxury EV leader” with an electric SUV in nearly every segment. However, they don’t consider Tesla a competitor due to its pricing.
Would you buy an affordable Lincoln EV? Cadillac’s entry-level electric SUV, the 2026 Optiq, starts at just over $50,000, so we could see it arrive in the same price range. Let us know your thoughts below.
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When it comes to folding bicycles, there’s one name in the game that deserves more credit than any other for putting these compact transportation machines on the map. Dahon has been behind some of the biggest innovations that have turned folding bicycles from quirky newcomers to mainstays of urban transportation. The company has offices in the US, Europe, and China. And it was the third I went to see, hopping a ride to Shenzhen to meet the company – and its maker – face to face.
Folding bikes are considered an integral part of city cycling these days. Believe it or not, the best-selling electric bikes in the US are folders. But that wasn’t always the case. It took someone with unconventional thinking to rewrite what the world considered a proper bicycle.
Aerospace physicist Dr. David Hon founded the company in 1982 (and put the “Da” and “Hon” in Dahon). As a lifelong cyclist, he was frustrated at how bulky bicycles were. Their size made for a good ride but complicated the ability to transport or store them in a home or office.
So he went back to the drawing board, working on ways to fold bicycles to be more compact in size yet still offer a sufficiently robust and comfortable frame for proper riding. The goal was to make bicycles fit better into an urban dweller’s life without sacrificing ride quality.
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The first commercial Dahon bike hit the market two years later in 1984, setting new standards for folding bicycles. There were other folding bikes around, but models from companies like Brompton, Raleigh, and Bickerton were niche and expensive, not to mention suffering from frame rigidity issues that often plagued folding designs. Dahon focused instead on targeting mass market appeal with something that was both affordable and durable.
Over the next few decades, Dahon became the world’s largest manufacturer of folding bicycles, at times claiming over 60% of the global market. They expanded production to multiple factories, introduced a wide range of models for different riding styles and budgets, and licensed some of their technology to other brands. Their designs influenced the entire folding bike industry – pushing competitors to improve folding speed, weight, and ride quality – and helped popularize the idea that folding bikes could be not just a quirky niche, but a serious transportation tool.
As electric bicycles grew in popularity over the past decade, Dahon began developing folding e-bikes, but with its own signature flair. That meant a growing number of lightweight, compact electric bikes that bucked the industry trend towards heavy, high-power models. And as much as I enjoy a relaxing pedal, those new folding e-bikes were what I was most interested in seeing on my tour of Dahon’s design headquarters. And I was not disappointed!
The offices house many of Dahon’s teams, from the designers to the marketing team and more. The walls are lined with all of the components used on different models produced by the company, which doubles as cool wall art and a real-world reference so that designers can walk over and touch the very parts they use to build bikes.
Just off the main office area is the showroom, which is packed with what looks like over a hundred different bikes. Many of them reminded me of traditional Dahon styles I’ve seen before, but just as many were shocking new styles I never knew existed, like full-size road bikes that still fold into compact packages, folding mountain bikes and even carbon fiber folding commuter bikes. I was especially surprised to see a folding e-tricycle with a giant wooden cargo box up front!
One of the first new electric models I was able to get an up-close look at was the new Dahon K Feather, an electric bike that weighs a mere 12 kg (26.4 pounds). For an electric bicycle, that’s very much a featherweight! In fact, later in the day when we took the bikes outside, a gust of wind literally blew it over while I was getting ready to ride.
This was just before the public release and so I was getting an early look at an e-bike I didn’t think could have even existed. For comparison, the lightest folding e-bikes I’ve been used to riding are nearly twice as heavy as this.
Of course, the K Feather doesn’t exactly have a massive power rating, but it’s plenty sufficient for an average city commute where the rider simply wants to get some assistance so they don’t arrive at work sweating. Once they get there, the bike folds up into something small enough to easily carry up the stairs and hide away under a desk.
Next up was the E Hemingway, another folding electric bike that I didn’t think could exist. This is basically an electric folding gravel bike, something that can handle being loaded down by big cargo panniers and take on traditional gravel biking or bikepacking, yet is still so small and compact when folded down. It even has mounting points all along the frame and fork to add more accessories, such as fork racks and frame-mounted attachments, offering even more possibilities.
But what really blew my mind was the new electric cargo trike from Dahon, known as the Cargoe T8. It has a number of impressive features. First of all, it’s a tadpole trike, meaning the two wheels are in the front instead of the more traditional two wheels in the back design. That makes it much more stable feeling as you ride it.
Next, it’s a front loader, as evidenced by that olympic-sized swimming pool of a wooden box in the front. Not only does it look beautiful, but it’s actually huge. I took it for a test ride with two adults sitting in the front cargo box and the bike felt like it was being ridden empty. More on the test rides in a moment though.
It’s also got an impressive powertrain, with a 48V 20Ah battery (960 Wh) powering a mid-drive motor that gets matched with a Shimano 8-speed internally geared rear hub. Then there are hydraulic brakes on top of that to give powerful stopping force – which is exactly what you want on a cargo trike rated to carry 190 kg (420 lb).
And of course, the cherry on top is that it’s got a folding design (of course, it’s a Dahon after all). There’s even a cute little “fourth wheel” caster that drops down below the motor mount so that you can push the folded trike more easily, such as if you needed to wiggle it around a garage or into an apartment building’s elevator. It truly is one of the best-designed tadpole cargo e-trikes I’ve ever seen, and I’ve seen a LOT of trikes.
Test riding
After touring the Dahon headquarters and meeting the team, the friendly folks at Dahon prepared a number of their new e-bike models outside for me to test ride. And as you can imagine, riding is the best part!
I started on the E-Hemingway, and despite not having any true gravel to test it on, the urban riding loops I did were still an excellent test for the bike’s feel. I was surprised by how nicely stiff it felt, especially considering folding bikes are notoriously flexy in their frames due to the long, spindly nature of the stems and tubes.
I was also unsure how it would feel with all of the bags mounted on either side of the front and rear wheels, but it didn’t offer me any issues. If anything, it was weird how much of a non-issue it was. The mounting points were obviously well thought out, and the fork mounts keep the weight close to the axis of rotation, further reducing any strange feeling from excess weight on the fork.
Next was an even lighter feeling bike, the K-Feather. At just 12 kg (26 lb), this is definitely a featherweight in the e-bike world, folding or otherwise. And while the bike’s 16″ wheels do make it feel smaller when you ride it, the bike still feels good in the handling department. It takes some getting used to, but it was very confidence-inspiring.
I just kept thinking what a perfect e-bike this would make for my mother-in-law, who needs to carry an e-bike up the stairs to her second-floor walkup apartment, and so she needs something as light as possible that can still take her to the train station she uses to get to work. Plus, the fact that it folds up so small makes it even easier to stow on the train. She’s a great example of just how many people could use a tiny, lightweight e-bike for a last-mile (or more!) type of ride.
To be honest, I’m rarely ever on folding e-bikes this small, and yet it still felt quite natural to me after the few seconds of “Whoa, those are little wheels!” feeling when you first get on.
The most interesting of all my test rides though was definitely the Cargoe T8, which was even more impressive than I expected. First of all, I didn’t just want to test it empty, so two of Dahon’s team members kindly obliged me by going for a ride together. They hopped in the front box together and we were off, like a father and two adult children. The bike pedals nicely, and the rear internally-geared hub is a key piece of kit to ensure you can downshift when you inevitably forget to before coming to a stop. Getting this thing rolling from top gear, even with that mid-drive motor, would be difficult if you forgot to downshift with a regular derailleur. That’s one of many reasons I love those internally-geared hubs.
The rear rack battery isn’t the most elegant-looking solution, and I wonder if it could have somehow been built into the wooden cargo box, though that would have made battery removal more difficult and robbed some of the cargo capacity. So instead, it makes sense to keep it easily accessible on the rack, especially since most people will be charging this e-trike by bringing the battery to the outlet and not by bringing the entire bike inside.
The clever folding option may not get used by everyone, but if someone did want to bring it inside, this would be the way to do it. It also allows you to more easily fit the bike in the back of a large SUV or pickup truck bed without needing to leave the tailgate open. It’s a niche feature, but if you ever need it, you’ll be glad to have it.
I was also surprised to see that the front end actually steers. This isn’t like those big cargo e-trikes where the bike just has a central articulation, which means you’re effectively rear-wheel steering by bending the rear of the bike around. The handlebars actually have linkage up to the front and steer a front axle, to which the cargo box is mounted. It turns so far that you can do tight donuts, even in a big cargo trike! It’s another thing that will likely take a bit of getting used to, but in the few minutes of city block maneuvering I did with the trike, I felt comfortable enough to risk my two riding companions in the front box!
Final thoughts
As my day at Dahon’s Shenzhen headquarters wrapped up, I couldn’t help but reflect on how far the company – and folding bikes as a whole – have come. What started as Dr. David Hon’s garage project has grown into a global force, one that helped shape the very idea of what a bicycle could be. Standing in that showroom surrounded by decades of design evolution, from simple steel commuters to featherweight electric gravel machines and full-blown folding cargo trikes, it was clear that the same spirit of experimentation still runs deep here.
Dahon’s influence is found in more than just the bikes they sell – it’s also felt in the market they helped create. The fact that folding bikes (and especially folding e-bikes) are now among the best-selling two-wheelers in the US owes a huge debt to their early persistence in making the concept practical, affordable, and appealing to everyday riders. Even now, in a market crowded with newcomers, Dahon continues to push into niches most companies wouldn’t think to touch, from featherweight e-commuters to apartment-friendly cargo trike heavy-haulers.
Rolling away from Dahon’s Shenzhen HQ, I felt like I’d just stepped out of a living history book for folding bikes – except this one still has blank pages waiting to be filled. These folks aren’t just cranking out bikes; they’re still experimenting, still asking “what if?” in ways that keep the whole folding bike category fresh.
Sure, the K Feather and E Hemingway wowed me, but that Cargoe T8? That thing was the mic drop. If there’s a better example of Dahon’s “folding without limits” mentality, I haven’t seen it.
So yeah, you can say I left impressed – not just by the bikes, but by the sense that after 40+ years, Dahon still has more tricks up its sleeve. And if the next few decades are anything like the last, I can’t wait to see what unfolds next.
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Is Mercedes-Benz throwing up the white flag? Mercedes is in talks with its biggest luxury rival over a potential tie-up that could shake things up.
Mercedes and BMW team up to take on luxury rivals
Even with massive discounts, Mercedes is still struggling to sell electric vehicles. In the US, the luxury automaker’s EV sales plummed 55% in the first half of 2025.
Sales of the EQE, EQB, and EQS are down significantly this year as Mercedes faces an influx of new luxury rivals.
In Europe, the situation isn’t much better. Mercedes’ new car registrations are down 2% through June compared to the same period in 2024.
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According to a new report from Germany’s Manager Magazin, Mercedes is in talks with its luxury rival, BMW, to help it turn things around. The partnership would involve Mercedes buying new four-cylinder engines from BMW to use in a wide range of upcoming vehicles.
BMW’s engines could be used to power everything from the CLA to the Mercedes GLC, GLB, C-Class, E-Class, and more.
Mercedes-Benz CLA Shooting Brake with EQ Technology (Source: Mercedes-Benz)
The engines are likely to be a modified version of the four-cylinder B48 engine, which currently powers nearly all BMW and Mini vehicles.
A source from Mercedes confirmed the potential tie-up to Autocar, claiming the luxury rivals are already in the late stages of negotiations. An official announcement is expected by the end of the year.
Mercedes-Benz CEO Ola Källenius with the new GLC EV (Source: Mercedes-Benz)
The potential partnership comes despite Mercedes phasing in its new in-house 1.5 L turbo engine, produced in China. Although it’s fit for mild hybrids, it isn’t well-suited for plug-in or extended-range vehicles.
If it becomes official, the partnership could expand into much more. The report mentions a potential shared engine plant in the US as BMW and Mercedes look to overcome the new auto tariffs on imported vehicles.
A new BMW iX3 prototype during road testing (Source: BMW)
With Mercedes blaming “slower-than-expected” demand for EVs, it’s expected to use the new engines from its luxury rival to fill the gap with PHEVs and EREVs.
Electrek’s Take
Will we see the BMW and Mercedes partnership expand into electric vehicles? Mercedes has already paused orders in the US on several EV models, including the electric EQS sedan, EQS SUV, EQE Sedan, and EQE SUV.
Mercedes blamed the “current market conditions.” Starting September 1, the company plans to halt production of the EQS and EQE SUV at its plant in Alabama to sell in the US. However, it will continue building models to sell overseas.
Meanwhile, the luxury automaker is preparing for its “largest product offensive” in company history. The 2026 CLA is rolling out, and Mercedes will unveil the new GLC EV next month at the Munich Motor Show.
It wouldn’t be a total shock to see the two partner up to take on EV leaders like BYD and Tesla globally. We should learn more soon. Check back for the latest.
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