Former CEO of cryptocurrency agency FTX Bankman-Fried arrested in Bahamas

SamBankman-Fried, who based and led FTX till a liquidity disaster pressured the Bahamas-based cryptocurrency trade to declare chapter, was arrested Monday within the Bahamas after being indicted on legal fees by US prosecutors.

The Bahamas Lawyer Common’s Workplace stated it initiated the arrest course of after receiving official affirmation of the costs in opposition to Pinkman-Fried, including that it expects extradition to the USA.

A spokesman for the US Lawyer’s Workplace in Manhattan confirmed that Pinkman-Fried was arrested within the Bahamas however declined to touch upon the costs.

“Earlier this night, Bahamas authorities arrested Samuel Bankman Fried on the request of the USA authorities, pursuant to a sealed indictment filed by the USA Lawyer’s Workplace for the Southern District of New York,” US Lawyer Damien Williams stated in a press release. We anticipate to maneuver to unveil the indictment within the morning and we may have extra to say at the moment.”

Mark Cohen, Bankman-Fried’s lawyer, didn’t instantly reply to a request for remark.

FTX, as soon as among the many largest cryptocurrency exchanges on the planet, filed for chapter safety on November 11 in one of many largest cryptocurrency bombings after merchants pulled $6 billion from the platform in three days, and rival trade Binance deserted a bailout deal.

The liquidity crunch got here after Bankman-Friedsecretly transferred $10 billion of FTX shoppers’ funds to Alameda, Reuters reported, citing two folks aware of the matter. Individuals stated not less than $1 billion of shopper funds vanished.

Bankman-Fried informed Reuters the corporate didn’t “cross a secret” however moderately misinterpret its “complicated inside ranking”. When requested in regards to the lacking cash, he replied: “???”

In a sequence of interviews and public appearances in late November and December, Bankman-Fried acknowledged the failure of threat administration however sought to distance himself from accusations of fraud, saying he had by no means blended shopper funds on FTX with cash in his buying and selling agency Alameda Analysis. .

“I’ve by no means tried to commit fraud,” Bankman-Fried stated in a Nov. 30 interview on the New York Instances Dealbook Summit, including that he would not personally consider he has any legal legal responsibility.

Bankman-Fried resigned as CEO of FTX the identical day he filed for chapter.

A supply aware of the investigation informed Reuters that the US Lawyer’s Workplace in Manhattan, led by veteran securities fraud prosecutor Williams, started in mid-November investigating how FTX dealt with shopper funds.

The Securities and Trade Fee and the Commodity Futures Buying and selling Fee have additionally opened investigations.

USCrypto traders additionally insisted on Bankman-Fried, alleging that he and a gaggle of celebrities selling FTX engaged in misleading practices, leaving traders with $11 billion in damages.

The demise of FTX has been the most recent upheaval within the cryptocurrency business this yr. The cryptocurrency market typically has fallen amid a sequence of crashes which have worn out different main gamers together with Voyager Digital and Celsius Community.


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