- Sam Bankman-Fried, former CEO of crypto trade platform FTX, was arrested Monday by Bahamian authorities.
- Authorities mentioned the arrest was based mostly on a “sealed indictment” from US authorities, anticipated to be unsealed on Tuesday.
- Bankman-Fried faces allegations that he illegally misused FTX purchaser resources, ensuing in billions of dollars in losses.
Bahamian authorities arrested Sam Bankman-Fried, the former CEO and founder of crypto exchange system FTX, on Monday, the US Attorney’s Office Southern District of New York confirmed on social media.
“Earlier this night, Bahamian authorities arrested Samuel Bankman-Fried at the ask for of the U.S. Government, based on a sealed indictment submitted by the SDNY,” the tweet reported. “
—US Lawyer SDNY (@SDNYnews) December 12, 2022
“The Bahamas and the United States have a shared fascination in keeping accountable all people today linked with FTX who may possibly have betrayed the public believe in and broken the law,” Bahamian Primary Minister Philip Davis stated in a push release from the Bahamas Business of the Lawyer Normal.
The Royal Bahamas Police Force, the Place of work of the Lawyer General, and the Ministry of Lawful Affairs did not promptly answer to Insider’s ask for for comment.
Though Bankman-Fried was arrested in the Bahamas, where he now resides, prosecutors could have the lawful tools to extradite him to the US, according to gurus.
Bankman-Fried’s arrest arrives right after FTX and its affiliate corporations submitted for personal bankruptcy in mid-November right after a impressive collapse that sent ripple consequences in the course of the whole cryptocurrency planet. Bankman-Fried and his associates face allegations that they illegally misused FTX purchaser money to prop up Bankman-Fried’s crypto-trading business, Alameda Research, ensuing in the loss of billions of dollars in buyer funds.
Bankman-Fried had been on rather of a media tour because FTX’s implosion and not too long ago explained to the New York Times’s Andrew Ross Sorkin that he “wasn’t seeking to comingle money” among FTX and Alameda Investigation.
Bankman-Fried was envisioned to testify right before the Residence Economical Expert services Committee on Tuesday. It is unclear regardless of whether that will happen as scheduled.
