- Sam Bankman-Fried, former CEO of crypto exchange FTX, was arrested by Bahamian authorities on Monday.
- Authorities said the arrest was based on a “sealed indictment” from US authorities, which is expected to be released on Tuesday.
- Bankman-Fried is facing allegations that he illegally misused FTX client funds, resulting in billions of dollars in losses.
Bahamian authorities arrested Sam Bankman-Fried, the former CEO and founder of crypto exchange platform FTX, on Monday, the U.S. Attorney’s Office for the Southern District of New York confirmed on social media.
“Earlier tonight Bahamian authorities arrested Samuel Bankman-Fried at the request of the US government, based on a sealed indictment filed by SDNY,” the tweet read. “
—SDNY US Attorney (@SDNYnews) December 12, 2022
“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 broken the law,” Bahamas Prime Minister Philip Davis said in a statement. release from the Bahamas Attorney General’s Office. .
The Royal Bahamas Police Force, Attorney General’s Office and Department of Legal Affairs did not immediately respond to Insider’s request for comment.
Although Bankman-Fried was arrested in the Bahamas, where he currently resides, prosecutors may have the legal tools to extradite him to the United States, experts say.
Bankman-Fried’s arrest comes after FTX and its affiliates filed for bankruptcy in mid-November following a dramatic meltdown that had ripple effects throughout the cryptocurrency world. Bankman-Fried and his associates are accused of illegally misusing FTX client funds to support Bankman-Fried’s crypto-trading firm, Alameda Research, resulting in the loss of billions of dollars in client funds.
Bankman-Fried had been on something of a media tour since the FTX implosion and recently told Andrew Ross Sorkin of The New York Times that he was “not trying to mix funds” between FTX and Alameda Research.
Bankman-Fried was scheduled to testify before the House Financial Services Committee on Tuesday. It is not known if this will happen as planned.