Former chief executive officer (CEO) of FTX, Sam Bankman-Fried has been arrested in the Bahamas.
Recall that FTX was an exchange platform that investors around the world used to trade cryptocurrency for other assets, including other digital currencies or cash.
Investors could also store their cryptocurrencies in digital wallets, similar to using a bank.
Bahamian authorities said Bankman-Fred was picked up on Monday at the request of the US government.
His arrest followed criminal charges filed against him by the US government.
Damian Williams, US Attorney of the Southern District of New York (SDNY) confirmed in a tweet on Monday night.
Williams said the arrest was based on a sealed indictment filed by the SDNY.
“We expect to move to unseal the indictment in the morning and will have more to say at that time,” Williams tweeted.
https://twitter.com/SDNYnews/status/1602451395910803457?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1602451395910803457%7Ctwgr%5E6ef8bf1b70ceed7cb95e008517bcfd42d0d219d3%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fd-6532590104195132825.ampproject.net%2F2211250451000%2Fframe.html
The FTX founder is under investigation over allegations bordering on wire fraud, securities fraud, securities fraud conspiracy and money laundering.
He had been under criminal investigation by US and Bahamian authorities following the collapse last month of FTX.
The firm filed for bankruptcy on November 11, when it ran out of money after the cryptocurrency equivalent of a bank run.
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