FTX founder Sam Bankman-Fried has been arrested in The Bahamas • TechCrunch

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Sam Bankman-Fried has been arrested by The Royal Bahamas Police Power following stories that the USA filed legal costs in opposition to the founder and former CEO of cryptocurrency change FTX, and is more likely to request his extradition.

The Workplace of the Lawyer Common of The Bahamas issued an announcement at the moment, which was reported by BNO and other news outlets, that it might maintain Bankman-Fried in custody till “a proper request for extradition is made.”

In an announcement, Bahamian Prime Minister Philip Davis stated, “The Bahamas and the USA have a shared curiosity in holding accountable all people related to FTX who might have betrayed the general public belief and damaged the regulation. Whereas the USA is pursuing legal costs in opposition to SBF individually, The Bahamas will proceed its personal regulatory and legal investigations into the collapse of FTX, with the continued cooperation of its regulation enforcement and regulatory companions in the USA and elsewhere.”

The workplace the USA Lawyer for the Southern District of New York Damian Williams confirmed the arrest and the truth that it was made “on the request of the U.S. Authorities, based mostly on a sealed indictment filed by the SDNY.” In a tweet, the workplace of the SDNY added: “We anticipate to maneuver to unseal the indictment within the morning and could have extra to say at the moment.”

The previous billionaire was scheduled to testify tomorrow as a witness earlier than the U.S. Home of Representatives Committee on Monetary Providers, TechCrunch’s Jacquelyn Melinek reported earlier at the moment. The committee is investigating the occasions that led as much as FTX’s implosion, which resulted within the crypto change filing for bankruptcy final month and Bankman-Fried being pressured to step down as chief govt.

As TechCrunch beforehand reported, Reuters reported final month that Bankman-Fried secretly transferred $10 billion in FTX shopper funds to affiliated buying and selling agency Alameda Analysis. Bankman-Fried informed the publication that the switch of the funds was a misreading of the “complicated inner labeling.” He has repeatedly claimed ignorance of any wrongdoing.

Axios reported earlier at the moment that Bankman-Fried “continued to say no to testify in entrance of the U.S. Senate Banking Committee, and that his legal professionals are refusing to just accept a subpoena,” based on a brand new statement from Sens. Sherrod Brown and Pat Toomey.

It is a creating story. TechCrunch reporter Amanda Silberling contributed to this piece.

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