The founder of the bankrupt crypto exchange FTX, Sam Bankman Freed, was detained in the Bahamas, writes The New York Times. A statement from local authorities said that a criminal case has been opened against the former head of the US trading platform, and his extradition is likely to be requested.
The U.S. Attorney's Office for the Southern District of New York has confirmed that Benman-Fried has been charged, and an indictment will be filed on Tuesday, December 13. Also, the SEC Securities and Exchange Commission added that they are accusing the founder of FTX of violating securities laws.
The NYTimes claims that among the articles that implicate Bankman-Fried are wire fraud and collusion, securities fraud and money laundering. Also, two class-action lawsuits and at least one lawsuit from a business partner, BlockFi, have been filed against the ex-head of the bankrupt crypto exchange.
In mid-November , Bloomberg reported that U.S. and Bahamian authorities were discussing the possibility of a Bankman-Freed trip to the United States. Law enforcement agencies in both countries are investigating Bankman-Fried's role in the collapse of FTX and are cooperating closely on the matter.
Bankman-Fried resigned as head of the FTX exchange he founded on November 11, the same day that the FTX group of companies, including Alameda Research and about 130 other affiliates, began voluntary Chapter 11 bankruptcy proceedings. The post of the head of FTX was taken by John Ray III, who previously led the bankruptcy proceedings of the energy giant Enron.
More information: The New York Times