Bahamian authorities have arrested Sam Bankman-Fried, founder and former CEO of FTX, following charges filed by US prosecutors.
Yesterday evening, the former CEO of FTX, which filed for bankruptcy last November, was arrested in the Bahamas after being charged with multiple counts, including wire fraud, securities fraud, conspiracy and money laundering, according to the New York Times.
Damian William, United States Attorney for the Southern District of New York (SDNY), reported that Bahamian authorities acted at the request of the United States government, based on a sealed indictment that was filed by the prosecution.
William confirmed that the SDNY will formally open the indictment against Bankman-Fried on Tuesday. The former CEO of the failed exchange is expected to be extradited to the United States for trial.
Sam Bankman-Fried had been called to testify at a hearing of the US House of Representatives Financial Services Committee scheduled for this Tuesday, with the aim of clarifying the case of the collapse of FTX.
In previous weeks, Bankman-Fried had indicated that he was not prepared to testify at the hearing. After a brief discussion with Congresswoman and Committee Chairwoman Maxine Waters, Bankman-Fried agreed to appear at the hearing scheduled for Tuesday, December 13.
However, she had indicated on Twitter that she would attend the hearing virtually or remotely, due to the paparazzi effect that her physical presence would cause. Now the hearing, which is still scheduled, will take place without Bankman-Fried's presence.
Committee Chair Maxine Waters, former prosecutor Abraham Hamadeh and New York's First Congressional District Representative Lee Zeldin all question Bankman-Fried's arrest ahead of the hearing. "Why not allow her to testify tomorrow and answer our many questions?" manifested Zeldin.
The United States has filed criminal charges against Sam Bankman-Fried
The Bahamas government confirmed the arrest of Sam Bankman-Fried on Monday. According to the New York Times, Bankman-Fried is the only person connected to FTX who has been charged by prosecutors in the Southern District of New York.
A person familiar with the matter said Bankman-Fried assisted in the arrest, which took place at her apartment complex in Albany. She is scheduled to appear in Magistrates Court in Nassau, the capital and cultural center of the Bahamas, on Tuesday.
Earlier this month, the New York Times reported that the U.S. Attorney's Office for the Southern District of New York was expanding its investigations into Sam Bankman-Fried and his companies FTX and Alameda Research, alleging that the latter may have been involved in market manipulation and the subsequent crash of UST, the Terra ecosystem's algorithmic stablecoin, last May.
Continue reading: Did Sam Bankman-Fried Cause the Fall of Terra (LUNA)?
Main image from The New York Times
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