FTX Founder and former Chief Executive Officer Sam Bankman-Fried was arrested in The Bahamas, after being criminally charged by the United States attorney for the Southern District of New York and presented a sealed indictment with the Bahamian government.
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(Photo : Alex Wong/Getty Images) WASHINGTON, DC - DECEMBER 08: CEO of FTX Sam Bankman-Fried testifies during a hearing before the House Financial Services Committee at Rayburn House Office Building on Capitol Hill December 8, 2021 in Washington, DC. The committee held a hearing on "Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States."
Bankman-Fried Arrested in the Bahamas
Bahamian authorities arrested the FTX founder and former Chief Executive Officer Sam Bankman-Fried due to criminal charges filed by federal prosecutors in New York. CNBC reported that this was the first move by regulators to hold accountability for the multi-billion dollar implosion of FTX last November.
According to US Attorney for the Southern District of New York Damian Williams, "We expect to move to unseal the indictment in the morning and will have more to say at that time." Bankman-Fried is expected to be extradited to the United States.
Based on a report from Reuters, the Bahamas Police arrested the former CEO at his apartment complex, located in Albany, Nassau, in reference to various Financial Offences against the law of the United States and the Bahamas.
Bahamian Prime Minister Philip Davis released a statement and said, "The Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law."
Prime Minister Davis added that the country will continue its own regulatory and criminal investigations into this incident, while the United States is pursuing criminal charges against the former CEO.
This arrest was a surprise for the committee. California District Representative Maxine Waters was disappointed that congress would not be able to hear from him, as Bankman-Fried was expected to testify virtually to the House Financial Services Committee on Tuesday. But because of the arrest, he will appear instead in Nassau's Magistrate Court on Tuesday.
As per Engadget's report, the new Chief Executive Officer John J. Ray III says that the company went on a $5 billion spending spree in 2021 and earlier this year. "Buying a myriad of businesses and investments, many of which may be worth only a fraction of what was paid for them," he added.
