Sam Bankman-Fried, the disgraced founder of now bankrupt crypto exchange FTX, was arrested in the Bahamas after US prosecutors formally filed criminal charges against him.
According to a Bahamian government statement, SBF was arrested on Monday after “the United States gave formal notice that it has filed criminal charges against SBF and will likely seek his extradition.”
The Bahamian government said it would “promptly” process an extradition request from the US government.
The Southern District of New York, which is investigating Bankman-Fried and the collapse of FTX and its sister company Alameda, confirmed his arrest on Twitter.
“Tonight, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. government based on a sealed indictment filed by SDNY,” tweeted US Attorney Damian Williams. “We plan to request the unsealing of the indictment tomorrow morning and then we can say more about it.”
Shortly after SBF’s arrest, the Securities and Exchange Commission’s official Twitter account said they commended law enforcement for “guaranteeing SBF’s arrest” and that they had filed separate charges related to “violations by Bankman-Fried of … approved securities laws, which are to be filed in public on Tuesday.
As reported, SBF was scheduled to attend a US House of Representatives committee hearing today and testify about the collapse of its crypto empire. However, after his arrest, the crypto boss will not be able to attend the hearing.
In a statement, Financial Services Committee Chair Maxine Waters said she was disappointed that SBF was not participating in tomorrow’s hearing.
“While Mr. Bankman-Fried must be held accountable, the American public deserves to hear directly from Mr. Bankman-Fried about the actions that have injured more than a million people and wiped out the hard-earned savings of so many people,” she said. said. “The public eagerly awaits these answers under oath before Congress, and the timing of this arrest robs the public of that opportunity.”
Waters added that the committee will also hear from the exchange’s new CEO, John Ray III, a bankruptcy expert who previously oversaw the aftermath of energy giant Enron’s collapse.
SBF, who recently invited the BBC to his Bahamas mansion, told media he hoped to start a new business and earn enough money to compensate victims of the collapse.
He also denied the cheating allegations, saying: “I didn’t knowingly commit any fraud, I don’t think I committed any fraud, I didn’t want that to happen. I certainly wasn’t as competent as I thought. that it was me