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Sam Bankman-Fried, the founder and former CEO of Bitcoin and cryptocurrency exchange FTX, has been arrested in the Bahamas by local authorities.
The arrest followed receipt of formal notification from the U.S. that it had filed criminal charges against SBF, per a statement from the Attorney General of the Bahamas. SBF’s extradition to the U.S. will likely be requested.
SBF has been on the news for a couple of years, but it wasn’t until recently that such coverage turned a dark corner. The Jane Street alumni turned crypto founder ultimately led his creations, FTX and Alameda Research, to insolvency as SBF’s severe mismanagement of users’ funds came to light. He then filed for Chapter 11 bankruptcy protection and resigned as CEO.
The disgraced entrepreneur then went on an unusual interview spree, talking about the companies and his version of the story to as many journalists willing to give him a stage. Notably, however, SBF would only deflect from answering the tougher questions, reaching a point where he said he “didn’t knowingly commingle users’ funds.”
Now, the story is set to take a new twist as prosecutors move to unseal the indictment on Tuesday morning. A source familiar with the matter told The New York Times that charges brought against SBF include wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering.
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