Sam Bankman Fried, the founder of a cryptocurrency exchange, was recently arrested in the Bahamas. The Bahamas attorney general announced the development, stating that Bankman will now appear in a magistrates’ court in Nassau, the Bahamas’ capital.
Bankman will now face before a judges’ court after being held for ‘financial breaches’ against US law.
According to a Bahamian police statement, the FTX founder was held for “financial offences” under US and Bahamian law.
The FTX collapse, which filed bankruptcy last month, was one of the most significant in cryptocurrency history. The disaster wiped out 94% of Sam Bankman Fried’s fortune and stopped more than a million consumers from withdrawing funds from the FTX market.
According to court filings, FTX currently owes about $3.1 billion to some of its largest creditors, putting the company in serious financial jeopardy.
Bankman was well-known in the bitcoin industry and was labeled the modern-day “Warren Buffet.” Until last year, the founder of FTX had a net worth of almost $15 billion.
According to the Bahamas Attorney General, “Mr. Bankman-Fried will be put in jail in compliance with our country’s Extradition Act.”
Samuel Bankman-Fried was arrested earlier this evening by Bahamian police at the request of the US government and in accordance with a secret indictment presented by the SDNY [Southern District of New York]. The US Attorney’s Office announced on Twitter that it would take action to unseal the indictment in the morning and would have more to say then.