Following news that the United States had filed criminal charges against the founder and former CEO of the cryptocurrency exchange FTX and would probably ask for his extradition, Sam Bankman-Fried was detained by The Royal Bahamas Police Force.
As published by BNO and other news organizations, the Bahamas’ Office of the Attorney General announced today that it will detain Bankman-Fried until “a formal request for extradition is submitted.”
The Bahamas and the United States have a common interest in holding responsible all people connected to FTX who may have breached the public trust and violated the law, according to a statement from Bahamian Prime Minister Philip Davis.
With the ongoing assistance of its law enforcement and regulatory allies in the US and internationally,
The Bahamas will continue its own regulatory and criminal investigations into the demise of FTX while the US is chasing criminal charges against SBF on an individual basis.
The arrest and the revelation that it was made “at the direction of the U.S. Government, depending on a sealed indictment filed by the SDNY” were both verified by the office of United States Attorney for the Southern District of New York Damian Williams.
The SDNY office tweeted further, “We anticipate moving to declassify the indictment in the morning and will have more to say at that time.”
The former billionaire was set to appear as a witness before the U.S. House of Representatives Committee on Financial Services tomorrow.
The committee is looking into what transpired before FTX’s collapse, which drove Bankman-Fried to resign as CEO and led to the cryptocurrency exchange declaring bankruptcy last month.
Reuters revealed last month that Bankman-Fried surreptitiously transferred $10 billion in FTX client funds to an associated trading company called Alameda Research, as Techbuild previously reported.
According to Bankman-Fried, the misinterpretation of the “confusing internal labeling” was what caused the cash to be transferred. He has frequently asserted that he is innocent of all wrongdoing.
According to a fresh statement from Sens. Sherrod Brown and Pat Toomey, Bankman-Fried “continued to refuse to testify in front of the U.S. Senate Banking Committee, and his lawyers are failing to acknowledge a subpoena,” as reported by Axios earlier today.
Don’t miss important articles during the week. Subscribe to blockbuild weekly digest for updates