The founder of crypto exchange FTX Sam Bankman-Fried was arrested in Bahamas on December 12 after US prosecutors filed a sealed indictment, setting the stage for Sam’s extradition and trial in the US, according to CNBC.
Damian Williams, prosecutor for the Southern District of New York, said on Twitter that the federal government is expected to announce the indictment this morning. Bahamas Attorney General Ryan Pinder added that the US had filed criminal charges against Bankman-Fried and was likely to request his extradition.
Bankman-Fried’s arrest by Bahamas law enforcement, as well his expected extradition, show the close cooperation between Bahamas and the US. “Bahamas and US have a shared interest in holding accountable all individuals associated with FTX who may have betrayed the public’s trust and broken the law”, said Bahamas Prime Minister Philip Davis.
While the US pursuing criminal charges against Sam Bankman-Fried alone, Bahamas will continue to carry out independent criminal investigations into the collapse of the FTX exchange.
In November, FTX and its related companies filed for bankruptcy, Bankman-Fried then stepped down as CEO. CEO of FTX was then replaced by John J. Ray III, who oversaw Enron’s bankruptcy. Ray is set to testify before Congress this week. In his prepared remarks, published earlier Monday, RAy said that had heavily commingled customer and corporate assets, losing billions along the way.
Legal experts told CNBC that if the federal government pursues bank fraud charges, Bankman-Fried could face life in prison.
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