Sam Bankman-Fried, the founder and former CEO of the recently declared bankrupt crypto exchange FTX, has been arrested in the Bahamas by law enforcement agencies. Law enforcement officials in the United States and the Bahamas explained the arrest of Bankman-Fried for violating laws in the United States and the Bahamas.
The Attorney General of the Caribbean country announced that he will be brought before the Magistrate’s Court on Tuesday.
FTX filed for bankruptcy in the US on November 11, shortly after Bankman-Fried stepped down as CEO. As a result, many crypto traders were unable to withdraw their investment from the exchange.
According to the BBC report, it is not yet clear how many victims will get their money back after the court hearing. However, analysts fear that they will probably get little return on investment.
FTX allows trading of traditional money in exchange for cryptocurrencies like Bitcoin.
It may be noted that in 2019 Bankman-Fried founded the crypto exchange ‘ftx.com’. The platform has become the world’s second largest crypto exchange in a very short period of time with a daily transaction of 1 trillion dollars.
