FTX founder Sam Bankman-Fried arrested in Bahamas after US charges him with defrauding investors
Sam Bankman-Fried was reportedly arrested in the Bahamas after US charged him with fraud and money laundering.
![FTX founder Sam Bankman-Fried arrested in Bahamas after US charges him with defrauding investors](https://img.techtusa.com/rcman/Cw1280h720q95gc/storage/files/images/2022/12/13/1670939116206-3MCr.png)
The FTX exchange, which unexpectedly declared bankruptcy in the past months, prompted the US authorities. FTX founder Sam Bankman-Fried was arrested in the Bahamas on orders from US prosecutors.
FTX founder arrested in Bahamas, US charges him with fraud and money laundering
Founded in 2019 and headquartered in the Bahamas, FTX announced that it went bankrupt after crisis. It turned out that the company, which filed for bankruptcy in response to the demand of investors to withdraw a total of $6 billion in 3 days, used customer funds for investment. In other words, the process of FTX's collapse accelerated when Bankman-Fried reportedly collateralized investor funds for billions of dollars in crypto loans to hedge fund Alameda Research.
In a written statement made by Bahamas Attorney General Ryan Pinder, it was noted that the former CEO of FTX, Bankman-Fried, was arrested by the Bahamas police. It was stated that Bankman-Fried's arrest was made after the official notification of the US files criminal changes and possible extradition request.
Today we charged FTX Trading Ltd CEO and co-founder Samuel Bankman-Fried with orchestrating a scheme to defraud equity investors. Investigations as to other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.
— U.S. Securities and Exchange Commission (@SECGov) December 13, 2022
According to the New York Times, Bankman-Fried will be prosecuted on allegations of electronic fraud, securities fraud and money laundering. Making a statement on the subject, Bankman-Fried stated that he does not think he has any criminal responsibility. However, in an interview at the New York Times Dealbook Summit on November 30, Bankman-Fried said, "I never tried to fraud."
In response to the arrest announcement, Bahamas Prime Minister Philip Davis said, “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."