The FTX’s former CEO was arrested in the Bahamas after the U.S. attorney for the Southern District of New York shared a sealed indictment with the Bahamian government. A statement from the Attorney General of the Bahamas mentioned that the Bahamas and the United States share a mutual interest in ensuring that anyone involved in the FTX scandal is held responsible. Including those who may have betrayed the public trust and broken the law.
Sam Bankman-Fried Arrested In The Bahamas
According to the U.S. Attorney’s Office for the Southern District of New York, the founder and former CEO of bankrupt cryptocurrency exchange FTX, Sam Bankman-Fried, has been arrested in the Bahamas. U.S. prosecutors stated that Bankman-Fried was arrested by Bahamian authorities at the request of federal authorities based on a sealed indictment.
Bankman-Fried’s arrest is the first official step of the authorities towards holding him accountable for the multi-billion dollar implosion of FTX last month. Following FTX’s replacement by a new management team, FTX has asserted that the company’s previous management was a complete failure of corporate controls.
The former CEO was expected to testify and make his first public appearance before US lawmakers on Tuesday. The House Committee on Financial Services is investigating the collapse of the exchange. But his attorneys told CNBC that he will no longer testify in the hearing. Before his arrest, Bankman-Fried has been on a vast of media appearances and multiple Twitter Spaces sessions.
Criminal Charges Against Sam Bankman-Fried
According to the New York Times report, a source familiar with the matter said that the criminal charges against Bankman-Fried include wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy, and money laundering.
Separately, the Securities and Exchange Commission (SEC) said in a statement that it had authorized charges against Bankman-Fried relating to his violations of the securities laws and also preparing to file its case tomorrow. SEC official Gurbir Grewal commends its law enforcement partners for securing the arrest of Bankman-Fried on federal criminal charges.
Numerous agencies have opened investigations into FTX and its former CEO, including the Justice Department, SEC, Commodity Futures Trading Commission (CFTC), and a number of U.S. state regulatory agencies.
