FTX Founder Sam Bankman-Fried Arrested In Bahamas Charged With Federal Indictment In New York

FTX Founder Sam Bankman-Fried Arrested In Bahamas Charged With Federal Indictment In New York

Manhattan U.S. Attorney Damian Williams confirmed the arrest in a brief statement, promising the unsealing of his indictment and further remarks on Tuesday morning Eastern Time.

Bahamanian officials issued more fulsome remarks late on Monday, noting that they received notice of a likely request to extradite Bankman-Fried.

READ ARTICLE: Feinman Family Arrested For Refusing Inspection

Once such a request is made, the attorney general said, authorities there plan to process it “promptly” and in accordance with Bahamanian law and its treaty obligations with the United States.

“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,” Bahamanian Prime Minister Philip Davis wrote in a statement, later referring to Bankman-Fried by his now-well known initials. “While the United States is pursuing criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigation into the collapse of FTX, with the continued cooperation with law enforcement and its regulatory partners in the United States and elsewhere.”

A prominent Democratic donor, Bankman-Fried became a billionaire through his cryptocurrency exchange marketed to a mass audience. FTX famously advertised during the Super Bowl, with a guest appearance by Curb Your Enthusiasm’s Larry David. The comedian, who has now been sued for his appearance, played the foil in an ad titled “Don’t Miss Out on Crypto,” as an example of the sceptic who gave a pass to a lucrative investment opportunity.

Several other celebrities and athletes who lined up to lend their names to the FTX brand —  including quarterback Tom Brady, model Gisele Bündchen, basketball legend Shaquille O’Neal and others — are now David’s co-defendants in a federal lawsuit.

Beyond trying to mainstream cryptocurrency on the TV airwaves, Bankman-Fried also aggressively courted Capitol Hill, often with strategic donations to overwhelmingly (but not exclusively) Democratic politicians. He made that pitch more palatable by expressing openness to federal authorities regulating his industry and testified previously before the House Financial Services Committee and the U.S. Senate Committee on Agriculture, Nutrition and Forestry.

Becoming a fixture known by his initials, SBF had been slated to appear again on Tuesday for a House Financial Services Committee hearing titled “Investigating the Collapse FTX, Part 1.”

The committee’s Chairwoman Maxine Waters (D-Calif.) said she was “surprised” by Bankman-Fried’s arrest — but added that it was “about time” to launch the process to bring him to justice.

“Although Mr Bankman-Fried must be held accountable, the American public deserves to hear directly from Mr Bankman-Fried about the actions that’ve harmed over one million people, and wiped out the hard-earned life savings of so many,” Waters said in a statement. “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. While I am disappointed that we will not be able to hear from Mr Bankman-Fried tomorrow, we remain committed to getting to the bottom of what happened, and the Committee looks forward to beginning our investigation by hearing from Mr John Ray III tomorrow.”

An attorney specializing in recovering money from failed corporations, Ray previously served as CEO of Enron to oversee its liquidation. He has taken over as CEO’s FTX and will testify before the committee about his new role in the company on Tuesday.

Have a tip we should know? [email protected]

READ ALSO: Eleanor “Ellen” J Bowles Stabbed to Death Inside Gated Community At Buckhead Home