The FTX saga has taken a new twist as the CEO of collapsed crypto exchange platform FTX Sam Bankman-Fried has been arrested in the Bahamas by the royal Bahamas police force, with a possible extradition to the U.S.
His arrest comes following a series of investigations and interviews after prosecutors in the United States filed criminal charges against him.
Following his arrest, the Bahamas Prime Minister Philip Davis said in a statement, “The Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law.
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“While the United States is pursuing criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere.”
Also, the Securities and Exchange Commission (SEC) disclosed in a statement that it had authorized charges relating to Bankman-Fried’s violations of its securities laws.
The criminal charges against him included wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy, and money laundering, said a person with knowledge of the matter.
The Attorney General of the Bahamas via a statement disclosed that Bankman-Fried would remain in their custody until a federal request for his extradition is made.
His arrest has given several U.S. lawmakers a feeling of ecstasy who expressed satisfaction, applauding both the Justice Department and Bahamian law enforcement for holding the FTX CEO accountable.
The FTX saga is visibly not ending anytime soon, as FTX industry peers have also filed for a lawsuit against the CEO.
Also, investors who have lost their funds in the company have gone ahead to file a lawsuit against FTX endorsers, the likes of Basketball players Steph Curry, Shaquille O’Neal, comedian Larry David, and Japanese Tennis star Naomi Osaka amongst others.
Lawyers involved in the case, however, expressed dissatisfaction at the suddenness of his arrest due to the fact that he was slated to testify remotely about the FTX collapse in a hearing in front of the House Financial Services Committee on Tuesday.
The chair of the Financial Services Committee Maxine Waters said “The American public deserves to hear directly from Mr. Bankman-Fried about the actions that have harmed over one million people.
“The public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity.”
The FTX CEO Sam Bankman-fried on November 11, 2022, filed for bankruptcy after the company was faced with a liquidity crisis.
Following the FTX collapse, more than $1.3 trillion of value has been reportedly wiped off the crypto market this year, according to analysts.
The crypto exchange native utility token FTT has since collapsed alongside the centralized cryptocurrency exchange, as it plunged by 90%, wiping out over $2.6 billion.
The collapse has no doubt affected investors’ confidence in the crypto industry as there are fears of a ripple effect that might befall other crypto exchange platforms, due to reports that some are contemplating filing for bankruptcy.