FTX founder Sam Bankman-Fried arrested in Bahamas

Business

Sam Bankman-Fried, founder of the collapsed cryptocurrency exchange FTX, has been arrested in The Bahamas, the country’s attorney general has said.

He is scheduled to appear on Tuesday in a magistrates’ court in the Caribbean country’s capital, Nassau.

Police said Mr Bankman-Fried, 30, was arrested for “financial offences” against laws in the US and The Bahamas.

Last month, FTX filed for bankruptcy in the US, leaving many users unable to withdraw their funds.

According to a court filing, FTX owed its 50 largest creditors almost $3.1bn (£2.5bn).

Among the most serious allegations against Mr Bankman-Fried is that he used billions of dollars of customer funds to prop up his investment trading company, Alameda.

 

It is unclear how much people who have funds in the exchange will get back at the end of bankruptcy proceedings – though many experts have warned it may be a small fraction of what they deposited.

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