The former CEO and co-founder of collapsed cryptocurrency exchange FTX has been arrested by authorities in the Bahamas.
Sam Bankman-Fried was taken into custody at the request of the US government based on a sealed indictment filed by the Southern District of New York which contains federal criminal charges.
The US Securities and Exchange Commission said it had authorised separate charges relating to alleged violations of securities laws.
Also yet to be revealed publicly, these are reported to be wire and securities fraud, conspiracy to commit wire and securities fraud and money laundering.
Extradition to the US is likely to follow.
Bankman-Fried will not now appear remotely before today’s United States House Committee hearing focused on the collapse of FTX exchange, confirmed committee chair Maxine Waters.
He had also been requested to attend a separate hearing tomorrow with the Senate Committee on Banking, but his lawyers had refused to accept a subpoena compelling this, according to Senators Sherrod Brown and Pat Toomey.
Chief restructuring officer and current FTX CEO John Ray has indicated in written testimony before his own appearance at the House Committee hearing today that FTX customer assets were “commingled” with that of Alameda Research, a crypto trading firm co-founded by Bankman-Fried which was integral to the bankruptcy of FTX.
Ray said Alameda “used client funds to engage in margin trading which exposed customer funds to massive losses”.