FTX founder arrested in the Bahamas
He is scheduled to appear in a magistrates' court today in the Caribbean country's capital, Nassau.FTX filed for bankruptcy last month, leaving its fifty largest creditors $3.1 billion out of pocket.A poster child for the cryptocurrency movement, Bankman-Fried's fall from grace has been sudden and dramatic. A report by newly-installed FTX CEO John Ray last month, blasted his predecessor for "a complete failure of corporate controls and a complete absence of trustworthy financial information".The new CEO also warned that a "substantial portion" of assets held with FTX may be "missing or stolen" and reveals that corporate funds were "used to purchase homes and other personal items for employees and advisors".The SEC's director of enforcement, Gurbir S.
Grewal, welcomed the news from the Bahamas: "We commend our law enforcement partners for working to secure the arrest of Mr. Sam Bankman-Fried in the Bahamas on federal criminal charges.
The Securities and Exchange Commission has separately authorised charges relating to Mr. Bankman-Fried’s violations of our securities laws, which will be filed publicly (Tuesday) in the Southern District of New York."Prior to his arrest Bankman-Fried was scheduled to testify today before the US House of Representatives Committee on Financial Services.
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