The founder and former CEO of FTX, Sam Bankman-Fried, has been arrested by The Royal Bahamas Police Force and is likely to be extradited to the US.
The Office of the Attorney General of the Bahamas said in a statement that it would hold Bankman-Fried in custody until a formal request for his deportation is made.
The Prime Minister of the Bahamas, Philip Davis, said in a statement that his country and the United States want to hold accountable all individuals associated with FTX who may have betrayed the public trust and broken the law. The Bahamas will continue 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.
Damian Williams, the United States Attorney for the Southern District of New York, confirmed that the arrest was made at the request of the US government. We expect to unseal the indictment in the morning and will have more to say at that time.
The former billionaire was going to testify tomorrow before the U.S. House of Representatives Committee on Financial Services, according to a report. The events that led up to FTX's implosion are being investigated by the committee.
According to reports, Bankman-Fried transferred $10 billion in FTX client funds to an affiliated trading firm. The publication was told by Bankman- Fried that the funds transfer was a mistake. He claims to be ignorant of any wrongdoing.
Bankman-Fried refused to testify in front of the U.S. Senate Banking Committee and his lawyers refused to accept a subpoena, according to a new statement from senators.
The story is evolving. This piece was contributed to by a reporter from the tech site.
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