FTX Founder Sam Bankman-Fried Arrested in the Bahamas
FTX founder Sam Bankman-Fried was arrested on Dec. 12 in the Bahamas, according to several news reports.The U.S. government's request for his arrest, based on a sealed indictment filed by the U.S. District Court of the Southern District of New York, came a day before Bankman-Fried was due to appear before the U.S. House Financial Services Committee to answer questions about the collapse of the major cryptocurrency exchange he formerly ran as CEO.
The Royal Bahamas Police Force arrested Bankman-Fried, according to a statement released on Monday.The former FTX CEO will be extradited from the Bahamas after U.S. officials make the request. What happens next in his case could have far-reaching implications for the cryptocurrency industry.
The New York Times reported the specific charges against Bankman-Fried to be wire fraud, securities fraud, wire fraud conspiracy, securities fraud conspiracy, and money laundering.The Securities and Exchange Commission (SEC) has authorized separate charges against the former FTX CEO.All are criminal charges that carry heavy penalties, and Bankman-Fried’s case will receive intense scrutiny.
The attorney general of the Bahamas, Ryan Pinder, also released a statement on the arrest, saying that a U.S. extradition request would be answered promptly.Meanwhile, Bahamas Prime Minister Philip Davis said that his country would continue its own investigation of FTX, which was incorporated in the Bahamas.Bankman-Fried will appear in a Bahamian court on Tuesday.
Authorities in the Bahamas are not without their own share of controversy. U.S. lawyers made the claim that officials there had asked Bankman-Fried to gain access to systems and help the country mint a new cryptocurrency.
Bankman-Fried’s arrest
Read more on investopedia.com
