The Bahamas arrests the CEO of cryptocurrency exchange FTX

Sam Bankman-Fried

On Monday, Sam Bankman-Fried, the creator of now defunct cryptocurrency exchange FTX, was apprehended in the Bahamas following US prosecutors bringing forth criminal proceedings against him as stated in an official statement from the Bahamian government.

Last week, the Southern District of New York proclaimed on Twitter that they had arrested Bankman Fried in connection to FTX and Alameda’s downfall. The district is currently leading an investigation into the two companies’ failure.

Just this evening, Samuel Bankman Fried was apprehended by the Bahamas authorities in response to a secret indictment issued from the SDNY. The request came directly from the US Government.

When CNN requested comment from Bankman Fried’s legal team, they did not provide a response right away.

While Fried’s future remains uncertain, the 30-year-old cryptocurrency luminary has gone from a celebrated success to outcast in one month. His company struggled with liquidity and subsequently filed for bankruptcy – leaving over 1 million investors stranded without any access to their financial savings. What penalties lie ahead for Fried is still up in the air.

Fried has vehemently denied all claims that he deceived FTX customers.

Fried is slated to make a virtual appearance before the US House of Representatives Financial Services Committee on Tuesday, who are anxiously awaiting explanations regarding FTX’s collapse. John J. Ray, the company’s new CEO will also be testifying during this time.