NEW YORK (AP) — Former CEO of bankrupt crypto firm FTX Sam Bankman-Fried has been arrested in the Bahamas at the request of the U.S. government, the U.S. Attorney’s Office in New York announced Monday.
Bankman-Fried is under criminal investigation by US and Bahamian authorities following the collapse of FTX last month. The company filed for bankruptcy on November 11, when it ran out of money after the cryptocurrency equivalent of a bank run.
“Earlier tonight, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. government, based on a sealed indictment filed by the U.S. Attorney’s Office for the Southern District of New York,” U.S. Attorney Damian Williams said in a statement. “We expect to unseal the indictment in the morning and we will have more to say then.”
Bankman-Fried’s arrest comes just a day before he is scheduled to testify before the House Financial Services Committee, alongside the company’s current CEO, John Ray III.
Bankman-Fried recently said he did not “knowingly” misuse client funds and said he believes his millions of angry clients will eventually be cured.