Bahamas, Dec 13: Sam Bankman-Fried, disgraced founder of the cryptocurrency exchange FTX was arrested in the Bahamas Monday, authorities said.
“The Bahamas and the United States in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law,” Prime Minister Philip Davis said in a statement.
“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 on Nov. 11 when the firm ran out of money after the cryptocurrency equivalent of a bank run. Customers tried to withdraw their assets all at once because of growing doubts about the financial strength of the company and its affiliated trading arm, Alameda Research.
Since its collapse, FTX’s new management has called the cryptocurrency exchange’s management a “complete failure of corporate controls.”
Bankman-Fried has said he did not “knowingly” misuse customers’ funds.
