Sam Bankman-Fried, founder and former CEO of collapsed cryptocurrency exchange FTX, has been arrested in the Bahamas.
The arrest was made following a request by the US government, Reuters reported Late Monday.
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According to the latest in the developing story, the disgraced former FTX chief will also be quickly extradited to the United States, his arrest coming ahead of a scheduled December 13 House Financial Services Committee hearing.
FTX Token (FTT/USD), which had already lost much of its value following the company’s collapse, fell another 10% Tuesday morning as the arrest story broke.
US files criminal charges against SBF
FTX began unraveling in late October following the crypto firm’s bank run, with top officials at both Bankman-Fried and FTX and its quant trading firm Alameda Research being charged with massive fraud and other crimes.
The Crypto exchange It was one of the biggest in the industry until its collapse shocked the crypto world. FTX filed for bankruptcy On 11 November 2022, the SBF came under fire from the industry for apparently fraudulent deals involving customer funds.
His arrest in the Bahamas follows investigations and widespread calls for him to be held accountable for one of the world’s biggest financial scandals. According to reports, the US will drop criminal charges against the former FTX boss on Tuesday.
Banker-Fried is charged with wire fraud, conspiracy to commit wire fraud, securities fraud, securities fraud conspiracy and money laundering.
The former FTX CEO will now not testify before the House Financial Services Committee on Tuesday, but his arrest will bring more light to the exchange’s implosion. And he faces jail time if prosecutors prove their case against him.