In a dramatic turn of events, Sam Bankman-Fried, the founder and former CEO of cryptocurrency exchange FTX, has been arrested by The Royal Bahamas Police Force following reports that the United States filed criminal charges against him.
The Office of the Attorney General of the Bahamas issued a statement today that it would hold Bankman-Fried in custody until “a formal request for extradition is made.”
The Bahamian Prime Minister Philip Davis also issued a statement in response to Bankman-Fried’s arrest, saying “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.”
It is still unclear what specific charges have been filed by US authorities against Bankman-Fried or what evidence they have presented to support their case. However, it appears as though he will be extradited back to the United States to face trial if he does not fight his extradition. This could mean that he would be subject to U.S. laws regarding cryptocurrencies if convicted, which could lead to serious consequences for him should he be found guilty of any wrongdoing.
Former FTX CEO Bankman-Fried was set to testify tomorrow before the U.S. House of Representatives Committee on Financial Services about the events leading up to the crypto exchange's implosion last month. Bankman-Fried was forced to step down as CEO following FTX's bankruptcy filing, and he is expected to face tough questions from the committee about his role in the debacle.