The founder of crypto exchange FTX has been arrested.
(Photo: Bloomberg)
The founder of bankrupt crypto exchange FTX, Sam Bankman-Fried, was unexpectedly arrested in the Bahamas on Monday. This was announced by the responsible Attorney General Ryan Pinder.
The step was taken because the United States had filed a criminal lawsuit against the 30-year-old and could demand his extradition, the statement said. He was due to testify before the US Congress on Tuesday, but he would be connected from his adopted country, the Bahamas.
FTX was once the third-largest crypto exchange, but filed for bankruptcy in the US in mid-November. The public prosecutor’s office and the US Securities and Exchange Commission have started investigations. There are allegations of fraud in the billions.
Bankman-Fried admitted to mistakes in an interview with the Handelsblatt, but denied criminal responsibility for the crash of his company. “I’ve never tried to cheat,” he insisted.
Top jobs of the day
Find the best jobs now and
be notified by email.
The Prime Minister of the Bahamas, Philip Davis, said the Bahamas and the US have “a common interest in holding accountable those who have abused public trust and broken the law in connection with FTX.” Davis and Bankman-Fried attended a major crypto conference in the Bahamas organized by FTX at the end of April. The company had relocated its headquarters to the Bahamas and wanted to build a new headquarters there for $60 million. Other crypto companies should also have settled in the tax haven.
At its peak, FTX was valued at $32 billion and attracted prominent investors.
More: US investors bullish ahead of inflation data and rate decision – Wall Street closes higher