Article Reading Time:
FTX founder Sam Bankman-Fried has been arrested by the Royal Bahamas Police after being formally notified by the US government of a criminal investigation against him.
Former head of failed cryptocurrencyFTX exchange Sam Bankman-Fried was arrested by Bahamian authorities on Monday evening at the request of the US government. Manhattan U.S. Attorney Damian Williams confirmed that he filed charges against Bankman-Fried on Monday, December 12, and the contents of the indictment will be unsealed the following morning.
Prime Minister of the Bahamas Philip Davis(Philip Davis) stated that the Bahamas and the United States have a common interest in bringing to justice individuals associated with FTX who may have betrayed the public trust and violated the law. He clarified that while the US pursues charges against Bankman-Fried privately, Bahamian law enforcement will continue its own investigation into the collapse of FTX.
The New York Times, citingsources familiar with the matter said the charges against Bankman-Fried include wire and securities fraud, conspiracy to commit wire and securities fraud, and money laundering.
United States Extradition Agreement withThe Bahamas allows US prosecutors to return defendants to American soil if the charges are deemed punishable by at least a year in prison in both jurisdictions. The degree of punishment for the former head of FTX will depend on such a characteristic feature of the American criminal legal system as legal dualism, meaning that in the territory of each state the law of that state applies, and under certain conditions federal law is additionally applied.
Let us recall that Bankman-Fried was previously invitedto the US Congress to voluntarily testify before the House of Representatives on Tuesday, December 13th. However, the businessman vaguely refused, citing his lack of a complete picture of what was happening.