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Democratic mega-donor, FTX founder Sam Bankman-Fried arrested in the Bahamas

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Former crypto billionaire and FTX founder Sam Bankman-Fried has been arrested in the Bahamas after US authorities filed criminal charges against him.

Bahamian authorities General Ryan Pinder told NBC News that Bankman-Fried was arrested on “unspecified criminal charges” by U.S. authorities, who “will likely seek his extradition.” Bahamian Prime Minister Philip Davis said in a statement that his government has a shared interest with the United States in bringing the FTX founder to justice.

“The Bahamas and the United States have a common interest in holding accountable anyone associated with FTX who may have betrayed the public trust and violated the law,” the Prime Minister said. “While the United States individually pursues criminal charges against SBF, The Bahamas will pursue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners. in the United States and elsewhere.

The arrest came as Bankman-Fried was scheduled to testify before the House Financial Services Committee on Tuesday. Per NBC News:

His arrest is the first concrete step by regulators to hold individuals accountable for FTX’s multi-billion dollar implosion last month.

Last month, FTX and its subsidiaries filed for bankruptcy and Bankman-Fried resigned as CEO. The crypto trading firm imploded dramatically following a run on assets similar to a bank run.

John J. Ray III replaced Bankman-Fried as CEO of FTX and will testify before Congress this week. In his prepared remarks which he released ahead of his testimony, Ray said he had never seen “such a complete failure of corporate controls at all levels of an organization, from the lack of reporting financial institutions to the complete failure of any internal control or governance.”

“While our investigation is ongoing and detailed conclusions will have to await its conclusion, the collapse of the FTX group appears to stem from the absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who have implemented virtually none of the systems or controls that are necessary for a business that is entrusted with the money or assets of others,” he said.

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