Security

FTX founder arrested in Bahamas

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December 13, 2022

Authorities in the Bahamas have arrested Sam Bankman-Fried, the founder of defunct cryptocurrency exchange FTX. He was arrested after U.S. prosecutors filed criminal charges against him, according to a CNN report.

FTX recently went through a liquidity crisis and filed for bankruptcy last month, leaving at least one million users with no way to access their funds.

Although the charges against Bankman-Fried have yet to be determined, it has been reported they include wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering. In addition, the Securities and Exchange Commission has filed separate charges for violations of securities laws.

"Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the US government, based on a sealed indictment filed by the SDNY," Damian Williams, attorney, wrote in a statement. "We expect to move to unseal the indictment in the morning and will have more to say at that time."