Sam Bankman-Fried: FTX founder arrested in Bahamas

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Sam Bankman-Fried: FTX founder arrested in Bahamas
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FTX founder Sam Bankman-Fried arrested in Bahamas

It is unclear how much people who have funds in the exchange will get back at the end of bankruptcy proceedings - though many experts have warned it may be a small fraction of what they deposited.Mr Bankman-Fried was once viewed as a young version of legendary US investor Warren Buffett, and as recently as late October had a net worth estimated at more than $15bn.

He had become well known in Washington DC as a political donor, mostly to Democratic politicians or groups, supposedly supporting pandemic prevention and improved crypto regulation.Mr Bankman-Fried will be held in custody "pursuant of our nation's Extradition Act," the Attorney General of the Bahamas said in a statement.

"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 [Southern District of New York]. We expect to move to unseal the indictment in the morning and will have more to say at that time," the US Attorney's office in Manhattan said in a tweet.

"The Securities and Exchange Commission has separately authorised charges relating to Mr. Bankman-Fried's violations of our securities laws, which will be filed publicly tomorrow in the Southern District of New York," he added. Mr Bankman-Fried had been due to testify about the collapse of FTX before the US Congress on Tuesday.Mr Bankman-Fried's lawyer did not immediately reply to a BBC request for comment.Police wish to inform that 30-year-old SAMUEL BENJAMIN BANKMAN-FRIED of California, U.S.A, has been arrested.

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