NASSAU, Bahamas — U.S. authorities said the former CEO of failed crypto firm FTX, Sam Bankman-Fried, has been arrested in Bahamas at the request of the United States Government.
According to the Bahamian government, Bankman-Fried was arrested by the Royal Bahamas Police Force following the formal notification that the U.S. had filed criminal charges against the disgraced former CEO and would likely request extradition.
The Bahamian government said it would continue to hold Bankman-Fried until a request for extradition is made by the U.S. Once that request is made, "The Bahamas intends to process it promptly, pursuant to Bahamian law and its treaty obligations with the United States," the Bahamian government said in a statement.
In a statement, the Bahamian Prime Minister said his government would continue their criminal investigation into FTX as well.
“The Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law. While the United States is pursuing criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere."
FTX filed for bankruptcy protection in November after a rival cryptocurrency exchange announced it was backing out of a plan to acquire it. The filing follows reports that FTX used deposits to pay Alameda Research creditors, a claim reportedly made by former Alameda Research CEO Caroline Ellison during a call in early November.
Bankman-Fried has said he was not aware that was true but said Alameda had a large position open on FTX that was "overcollateralized a year ago." He also partially blamed a market collapse that "threatened that position quite a bit," as well as mismanagement.
