Sam Bankman-Fried has been arrested

FTX founder to be extradited for further investigation of fraud

13.Dec.22 11:32 AM
By FTX founder to be extradited for further investigation of fraud
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The founder and former CEO of cryptocurrency exchange FTX, Sam Bankman-Fried, has been arrested in the Bahamas. US prosecutors recently filed several charges against banker-Fried.

Bankman-Fried was arrested around midnight in his apartment in the Bahamas, a police spokesman said. This was in response to the US charges against the former President. Banker Fried will appear in court in the Bahamas on Tuesday and is expected to be extradited to the United States.

A spokesman for the Manhattan District Attorney's office confirmed the arrest to Reuters, but did not elaborate on the charges. Later on Tuesday, the charges against the FTX founder were to be officially announced. According to The New York Times, it is fraud and money laundering. The US Securities and Exchange Commission (SEC) has also filed charges against Bankman-Fried.

Crypto exchange FTX got into trouble in november when the company was no longer able to pay out funds from customers. This was partly due to the fact that ten billion dollars were transferred from the stock exchange to Alameda Research, an investment company of Bankman-Fried. Some of that money would have disappeared.

Bankman-Fried stepped down as ceo last month. In recent weeks, he appeared several times in interviews with the media, in which the former top executive stated that he does not think he is criminally liable. He told The New York Times that he blamed "huge management mistakes" and sloppy accounting for the company's downfall. Bankman-Fried also said he " never tried to commit fraud." The top man was supposed to testify before the US Congress on Tuesday, but that can not continue because of the arrest, writes Reuters.

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