Sam Bankman-Fried: Founder of Bankrupt Crypto Firm FTX Arrested in Bahamas | Tech News

Police in the Bahamas have arrested Sam Bankman-Fried, the founder of bankrupt cryptocurrency firm FTX.

The country’s attorney general said the Bahamas had received formal notification from the United States that criminal charges had been filed against him locally – and that an extradition request was likely.

FTX, the second largest cryptocurrency exchange in the world, file for bankruptcy protection last month in the U.S. and Fry the banker The resignation as chief executive sparked a wave of public demands for greater regulation of the cryptocurrency industry.

The struggling cryptocurrency exchange struggled to raise funds to avoid collapse as traders withdrew $6bn (£4.89bn) from the platform in just 72 hours.

More than 1 million customers worldwide use his platform to purchase assets such as Bitcoin.

Bankman-Fried — known as “SBF” — has become one of the biggest names in the cryptocurrency industry, with his firm stepping in quickly to save smaller companies after they were near bankruptcy.

But in just three days, a series of bombshell allegations caused FTX to crash and go bankrupt.

A spokesman for the U.S. Attorney’s Office in Manhattan, New York, confirmed that Bankman-Fried was arrested in the Bahamas, but declined to comment on the charges.

Bankman-Fried said in a draft of his testimony that he “deeply regrets bowing to pressure” to sign the bankruptcy filing, according to Reuters.

It also said, “less than ten minutes after signing the nomination papers,” it added, according to Reuters. [his successor] John Ray, as CEO, had billions of dollars in potential financing proposals.”

FILE - The FTX Arena logo appears where the Miami Heat will play on November 12th.  Miami, December 12, 2022. The former CEO of failed cryptocurrency exchange FTX said on Wednesday, November 22. 30. He didn't...knowingly" Misusing client funds and claiming he believed his millions of angry clients would eventually be whole.  (AP Photo/Marta Lavandier, File)
Image: Associated Press

FTX was founded to allow people to buy cryptocurrencies using British pounds and U.S. dollars. It’s been praised for its easy-to-use interface – and makes money by charging a small fee for each transaction.

In a series of interviews and public appearances in late November and December, Bankman-Fried acknowledged the risks
Management lapses, but denies fraud allegations.

“SBF” became a prominent, unconventional figure known for his wild hair, T-shirts and shorts.he appeared in
A symposium with celebrity politicians such as former US President Bill Clinton and former British Prime Minister Tony Blair
And supermodel Gisele Bundchen.

He contributed $5.2m (£4.23m) to President Joe Biden’s 2020 campaign and became one of the biggest donors to the Democratic political candidate.

He is due to appear in Bahamas District Court on Tuesday.

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