Authorities Say Sam Bankman-Fried Arrested In The Bahamas

• Bahamian authorities have arrested Sam Bankman Fried, former CEO of crypto-exchange platform FTX. 
• Authorities stated that the arrest was made on the basis of a sealed indictment from US authorities. It is expected to be released on Tuesday. 
• Bankman-Fried is facing allegations that he illegally used FTX customer funds to cause billions of dollars in losses. 

Bahamian authorities detained Sam Bankman-Fried (the former CEO and founder of crypto trading platform FTX), the US Attorney’s Office Southern District of New York announced via social media. 

“Earlier this evening, Bahamian officials arrested Samuel Bankman Fried at the request of U.S. Government, based upon a sealed indictment filed to the SDNY,” the tweet stated.We expect to move in the morning to unseal indictment and will have much more to say at that point.”

—US Attorney SDNY (@SDNYnews) December 12, 2022

“The Bahamas and the United States share a common interest in holding accountable all individuals involved with FTX, who may have betrayed public trust and broken law,” Philip Davis, Bahamian Prime Minister, stated in a press release issued by the Bahamas Office of The Attorney General.

Insider’s request for comment was not immediately answered by the Royal Bahamas Police Force, the Office of the Attorney General, or the Ministry of Legal Affairs.

Although Bankman-Fried was not arrested in the Bahamas, where his current residence is, prosecutors could have the legal toolsExperts say that he should be extradited from the US. 

Bankman-Fried was taken into custody after FTX filed for bankruptcy along with its affiliate companies in mid-November following a massive collapse that caused ripple effects throughout the cryptocurrency community. Bankman-Fried, along with his associates, are being accused of illegally using FTX customer money to support Alameda Research, Bankman-Fried’s crypto-trading business. This resulted in the loss billions of dollars in customer funds. 

Bankman-Fried had been on a media tour after FTX’s collapse and recently told Andrew Ross Sorkin of the New York Times that he wasn’t trying “to comele funds” between FTX Research and Alameda Research. 

Bankman-Fried was scheduled to testify before Tuesday’s House Financial Services Committee. It is not clear if this will take place as planned.