Sam Bankman-Fried, who founded and led FTX until a liquidity crunch forced the cryptocurrency exchange to declare bankruptcy last month, was arrested on Monday in The Bahamas after being criminally charged by US prosecutors.
It marks a stunning fall from grace for the 30-year-old entrepreneur who rode a cryptocurrency boom to create one of the world's largest cryptocurrency exchanges and a net worth that Forbes pegged a year ago at $26.5 billion.
The exchange, launched in 2019 and based in The Bahamas, filed for bankruptcy Nov. 11 after it struggled to raise money to stave off collapse as traders rushed to withdraw $6 billion from the platform in just 72 hours.
The attorney general's office for The Bahamas said it proceeded with the arrest after receiving formal confirmation of charges against Bankman-Fried, adding it expects he will be extradited to the United States.
A statement from The Bahamas Police said Bankman-Fried had been arrested shortly after 6:00 pm Monday (2300 GMT) at his apartment complex, located in Albany, Nassau, in The Bahamas.
"He was arrested reference to various Financial Offences against laws of the United States, which are also offences against laws of the Commonwealth of The Bahamas," the statement said, adding he was taken into custody without incident and will appear in Nassau's Magistrate Court on Tuesday.
A spokesman for the U.S. Attorney's office in Manhattan confirmed Bankman-Fried had been arrested in The Bahamas but declined to comment on the charges.
"Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. Government, based on a sealed indictment filed by the United States Attorney's Office for the Southern District of New York," United States prosecutor Damian Williams said in a statement. "We expect to move to unseal the indictment in the morning and will have more to say at that time."
Mark Cohen, a lawyer for Bankman-Fried, did not immediately respond to a request for comment.
Bankman-Fried's indictment by US authorities comes as the Department of Justice is considering charges against a far bigger player in the crypto world, industry-leading exchange Binance.
Reuters reported Monday that some Justice Department prosecutors believe they have gathered sufficient evidence in their long-running investigation of Binance to charge the company and some top executives. A Binance spokesperson told Reuters in relation to the story: "We don't have any insight into the inner workings of the US Justice Department, nor would it be appropriate for us to comment if we did."
Binance is under investigation for possible money-laundering and sanctions violations, Reuters has reported. Others in the department have argued for taking time to review more evidence, four people familiar with the matter told Reuters.
