FTX filed for bankruptcy last month, leaving many unable to withdraw their funds from the cryptocurrency exchange.
Image source, Tom WilliamsThe Bahamas police have arrested Sam Bankman-Fried, founder of of collapsed cryptocurrency exchange FTX, the country’s attorney general has said.
The Bahamas said it received formal notification from the US of criminal charges against Mr Bankman-Fried.
Last month FTX filed for bankruptcy in the US, leaving many users unable to withdraw their funds.
It was the second largest crypto exchange in the world, trading about $10bn of crypto coins every day.
“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the US Government, based on a sealed indictment filed by the SDNY [Southern District of New York]. We expect to move to unseal the indictment in the morning and will have more to say at that time,” the US Attorney’s office in Manhattan said in a tweet.
On 12 December 2022, the Office of the Attorney General of The Bahamas is announcing the arrest by The Royal Bahamas Police Force of Sam Bankman-Fried (“SBF”), former CEO of FTX. pic.twitter.com/CRNeLPAbVp
— Latrae L. Rahming (DOC)🇧🇸 (@latraelrahming)
In a series of interviews and public appearances in recent weeks, Mr Bankman-Fried has acknowledged that mistakes were made at the firm but sought to distance himself from accusations of illegal activity.
“I didn’t ever try to commit fraud,” he said at the New York Times’ Dealbook Summit at the end of last month.
FTX filed for bankruptcy protection on 11 November in one of the most high profile collapses of cryptocurrency exchange after users pulled $6bn (£4.9bn) from the platform in three days and rival exchange Binance abandoned a rescue deal.