Bahamas Police Force Arrests FTX Founder Sam Bankman-Fried

A press release by the Royal Bahamas Police Force has it that FTX founder Sam Bankman-Fried has been arrested after the U.S. filed criminal charges against him.

According to the press release, the Bahamas expects the U.S. to request the extradition of Bankman-Fried.

A report by the New York Times has it that the U.S. could charge Bankmam-Fried with wire fraud, securities fraud, money laundering, and related conspiracy charges.

The U.S. Securities and Exchange Commission also plans to bring charges, the report added.

Bahamas Prime Minister Philip Davis said the country would continue pursuing its own investigation into FTX’s collapse, alongside the U.S.’s criminal charges.

Bankman-Fried was set to testify virtually before the House Financial Services Committee about the exchange’s collapse on Tuesday.

Bankman-Fried will appear in court on Tuesday in the Bahamas.

FTX filed for bankruptcy just over a month ago. Its new CEO, John J. Ray III, has raised an alarm about the corporate governance and documentation failures that he found at FTX.

Among other issues, Ray found that FTX had heavily commingled customer and corporate assets, losing billions along the way.

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