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By KEN SWEET (AP Enterprise Author)
NEW YORK (AP) — The previous CEO of failed cryptocurrency agency FTX, Sam Bankman-Fried, was arrested Monday within the Bahamas on the request of the U.S. authorities, U.S. and Bahamian authorities.
Bankman-Fried had been beneath prison investigation by the 2 international locations following the collapse final month of FTX. The agency filed for chapter on Nov. 11, when it ran out of cash after the cryptocurrency equal of a financial institution run.
“Earlier this night, Bahamian authorities arrested Samuel Bankman-Fried on the request of the U.S. Authorities, based mostly on a sealed indictment filed by the US Legal professional’s Workplace for the Southern District of New York,” U.S. Legal professional Damian Williams mentioned in an announcement Monday. He mentioned he anticipated the indictment could be unsealed Tuesday.
Bankman-Fried’s arrest comes only a day earlier than he was resulting from testify in entrance of the Home Monetary Providers Committee, together with the corporate’s present CEO, John Ray III.
Bahamian Legal professional Common Ryan Pinder mentioned the Bahamas would “promptly” extradite Bankman-Fried to the U.S. as soon as the indictment is unsealed and U.S. authorities make a proper request. In the meantime, Bahamian authorities plan to proceed their very own investigation into Bankman-Fried.
“The Bahamas and the US have a shared curiosity in holding accountable all people related to FTX who might have betrayed the general public belief and damaged the regulation,” Bahamian Prime Minister Phillip Davis mentioned in an announcement.
FTX was headquartered within the Bahamas, and since its failure Bankman-Fried has remained in his luxurious compound in Nassau.
Individually, the Securities and Alternate Fee mentioned it additionally plans to file fees Tuesday towards Bankman-Fried for violating U.S. securities regulation.
Bankman-Fried, who was one of many world’s wealthiest folks on paper, went from king of cryptocurrencies to his arrest in a month. FTX was the second-largest cryptocurrency change on the earth earlier than it went bankrupt, however the change intermingled clients deposits with its funding arm, Alameda Analysis.
Earlier than its failure, Bankman-Fried was a distinguished persona in Washington, donating hundreds of thousands of {dollars} towards largely left-leaning political causes and Democratic political campaigns.
Ray, the brand new CEO of FTX in chapter and a long-time restructuring specialist, has mentioned in court docket filings that the monetary situations at FTX have been worse than at Enron.
Bankman-Fried mentioned just lately that he didn’t “knowingly” misuse clients’ funds, and mentioned he believes his hundreds of thousands of offended clients will finally be made entire.
A spokesman for Bankman-Fried had no remark Monday night.
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