Crypto mogul and FTX boss Sam Bankman-Fried arrested in the Bahamas

American entrepreneur and cryptocurrency firm FTX’s founder Sam Bankman-Fried was arrested in the Bahamas on Monday (December 12) at the request of the US government.

“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the US government, based on a sealed indictment filed by the southern district of New York,” US prosecutor Damian Williams said in a statement.

Also read: Sam Bankman-Fried: This crypto-billionaire mints money, then gives it away

William said the prosecution plans to “unseal the indictment in the morning (Tuesday)” after which more can be said on the case.

Bankman-Fried was being pursued by US officials after the fall of his FTX platform. He was scheduled to appear at a US Congress hearing on Tuesday along with company’s current CEO, John Ray III, to testify under oath about the sudden debacle of the successful cryptocurrency firm.

Bahamian Attorney General Ryan Pinder told the media that the country would be able to “promptly” extradite Bankman-Fried to the US once the indictment is opened and US authorities make a formal request to take back the 30-year-old to the US.

The investigation will be carried out by authorities in the Bahamas in the meantime.

“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,” Bahamian Prime Minister Phillip Davis said in a statement.

Often compared with renowned investor Warren Buffet, Bankman-Fried successfully ran FTX, one of the largest cryptocurrency exchanges in the world, until it went bankrupt. His company had filed for bankruptcy on November 11. Reports said the shortage in liquidity was triggered when Bankman-Fried secretly moved $10 billion of FTX customer funds to Alameda, a trading company also run by him.

Also read: FTX cryptocurrency exchange: The bankruptcy and its aftermath

After FTX’s valuation crashed in November, it came to light that Alameda’s balance sheet was built on the former’s currency. Bankman-Fried has been in Bahamas, where his firm his headquartered, since its fall and has refused any kind of legal assistance, reports said.