Bahamian authorities stated they’re able to act “promptly” after police on Monday arrested Sam Bankman-Fried, former CEO of the bankrupted cryptocurrency change FTX, in relation to sealed fees by the Division of Justice (DOJ).
In accordance with a press release from the Royal Bahamas Police Pressure, Bankman-Fried was arrested “with out incident” at his luxurious house in Nassau round 6 p.m. Police stated he was apprehended in “reference to numerous Monetary Offense towards legal guidelines of the US, that are additionally offenses towards legal guidelines of the Commonwealth of The Bahamas.”
Bahamas Legal professional Basic Ryan Pinder additionally launched a press release on Bankman-Fried’s arrest, saying that when an extradition request is made by the US, his nation “intends to course of it promptly.”
“Whereas the US is pursuing legal fees towards [Bankman-Fried] individually, the Bahamas will proceed its personal regulatory and legal investigations into the collapse of FTX, with the continued cooperation of its legislation enforcement and regulatory companions in the US and elsewhere,” Pinder stated.
Damian Williams, prosecutor for the Southern District of New York (SDNY) Justice Division, additionally confirmed on Twitter Monday that Bankman-Fried had been arrested “on the request of the U.S. Authorities, based mostly on a sealed indictment.” Whereas Williams stated his workplace plans to unseal the indictment Tuesday morning, a supply near the incident advised The New York Occasions that fees embody wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and cash laundering.
A spokesperson for SDNY stated the division “can not verify or touch upon another people” when requested if any extra FTX executives had been being investigated.
FTX filed for chapter safety November 11 in Delaware federal courtroom, and Bankman-Fried stepped down as head of the corporate. In accordance with the Occasions, prosecutors have been investigating the corporate’s “sudden implosion” from a $32 billion firm to chapter in a matter of days.
Bankman-Fried was scheduled to testify nearly on Tuesday earlier than the Home Committee on Monetary Providers previous to his arrest, reported CNBC. His attorneys advised the outlet, nevertheless, that he is not going to testify.
Below the present extradition treaty signed by the U.S. and the Bahamas in 1990, extraditable offenses embody those who break the legislation of each governments. The treaty additionally requires the requesting state to supply an arrest warrant issued by a decide or a unique “competent authority.”
In accordance with Bahamian police, Bankman-Fried will seem in Nassau courtroom on Tuesday.
Bankman-Fried based the cryptocurrency change alongside his buddy and enterprise accomplice, Zixiao “Gary” Wang, in Might 2019. The corporate peaked in 2021 and hosted round 1 million customers who purchased, offered or traded their cryptocurrencies on their web site.
In current months, nevertheless, considerations had been raised over FTX’s liquidity, resulting in a number of customers trying to withdraw their holdings from the change. FTX, nevertheless, was not capable of honor their prospects’ requests, which amounted to roughly $8 billion.
Newsweek has reached out to SDNY for remark.
