By The FirstSam Bankman-Fried, founder of bankrupt crypto trading firm FTX and former Democratic sugar daddy, was arrested in the Bahamas on Monday evening at the request of the U.S. Government.
According to United States Attorney for the Southern District of New York Damian Willaims, the arrest was based on a sealed indictment filed by the Southern District of New York, which is expected to be unsealed in the morning.
Bahamian authorities expect the U.S. government to request extradition, setting the stage for Bankman-Fried to be tried in New York.
“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,” Bahamian Prime Minister Philip Davis said in a statement. “While the United States is pursuing criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere,” continued the statement.
In addition to the federal charges being brought against Bankman-Fried, U.S. Securities and Exchange Commission has filed a civil complaint against the FTX founder. According to a press release, the SEC claims Bankman-Fried “concealed his diversion of FTX customers’ funds to crypto trading firm Alameda Research while raising more than $1.8 billion from investors.”
“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC Chair Gary Gensler. “The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws.”
READ MORE: CONSPIRACY & FRAUD: Here’s the Eight-Count Indictment Against Crypto CEO Bankman-Fried