Founder of bankrupt crypto exchange FTX detained in Bahamas
U.S. Attorney's Office files charges against Sam Bankman-Fried, he will be extradited
Sam Bankman-Fried, the founder of the bankrupt crypto-exchange FTX, was detained in the Bahamas, writes The New York Times. In a statement, local authorities said that criminal charges have been filed against the former head of the trading floor in the U.S. and his extradition is likely to be requested.
The U.S. Attorney's Office for the Southern District of New York confirmed that Banman-Fried has been indicted, and an indictment will be filed Tuesday, Dec. 13. Also, the SEC added that it is charging the FTX founder with violating securities laws.
The NYTimes claims that among the counts charged against Bankman-Fried are fraud and conspiracy by electronic means, securities fraud and money laundering. There are also two class action lawsuits against the former head of the bankrupt cryptocurrency exchange and at least one from a business partner, BlockFi.
Law enforcement agencies in both countries are investigating Bankman-Fried's role in the collapse of FTX and are working closely on the matter.
Bankman-Fried stepped down as head of the FTX exchange he founded on Nov. 11, the same day the FTX group, including Alameda Research and about 130 other affiliated entities, began voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code. The post of FTX head was taken by John Ray III, who previously led the bankruptcy proceedings for energy giant Enron.