April 15, 2024

American entrepreneur and founder of the collapsed cryptocurrency exchange FTX, Sam Bankman-Fried, has been arrested in Bahamas.

According to BBC News, in the nation’s capital, Nassau, a magistrates court, he is expected to make an appearance on Tuesday.

Last month, FTX filed for bankruptcy in the US, leaving many users unable to withdraw their funds.

According to a court filing last month, FTX owed nearly $3.1 billion (£2.5 billion) to its 50 largest creditors.

Damian Williams, US Attorney of the Southern District of New York (SDNY), confirmed the arrest in a tweet on Monday night.

Williams said the arrest was based on a sealed indictment filed by the SDNY.

Bankman-Fried was once viewed as a young version of legendary US investor Warren Buffett, and as recently as late October, his net worth was estimated at more than $15 billion.

He had become well known in Washington DC as a political donor, mostly to Democratic politicians or groups, supposedly supporting pandemic prevention and improved crypto regulation.

Bankman-Fried will be held in custody “pursuant of our nation’s Extradition Act,” the Attorney General of the Bahamas said in a statement.

“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.

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