Embattled cryptocurrency mogul and former FTX CEO Sam Bankman-Fried was arrested within the Bahamas after being criminally charged by US prosecutors. US officers have been looking for to cost Bankman-Fried after the spectacular collapse of his FTX platform.
The arrest comes on the eve of Bankman-Fried’s scheduled look at a US Congress listening to during which he was to testify below oath in regards to the crypto trade’s in a single day demise. (Additionally Learn | Bankman-Fried’s FTX, dad and mom purchased Bahamas property price $121 mn: Report)
“Earlier this night, Bahamian authorities arrested Samuel Bankman-Fried on the request of the US Authorities, based mostly on a sealed indictment filed by the southern district of New York,” US prosecutor Damian Williams mentioned in an announcement.
“We anticipate to maneuver to unseal the indictment within the morning and can have extra to say at the moment,” he added.
All it’s good to know in regards to the FTX-Sam Bankman-Fried saga
As soon as among the many world’s largest cryptocurrency exchanges, FTX filed for chapter safety on November 11 in one of many highest-profile crypto blowups.
The liquidity crunch got here after Bankman-Fried secretly moved $10 billion of FTX buyer funds to Alameda, Reuters reported, citing two individuals aware of the matter.
FTX’s valuation imploded following a November 2 report on ties between FTX and Alameda, a buying and selling firm additionally managed by Bankman-Fried, which uncovered that Alameda’s steadiness sheet was closely constructed on the FTT forex – a token created by FTX and with no unbiased worth.
The value of FTT plunged in early November, roiling each Alameda and FTX.
Samuel Bankman-Fried had in latest weeks defied authorized recommendation, providing his model of his firm’s sudden failure, often by video hyperlink from the Bahamas the place his firm is headquartered.
(With inputs from AFP, Reuters)