Moments in the past, authorities within the Bahamas introduced that Sam Bankman-Fried (SBF) was arrested. In case you haven’t been following the FTX saga, SBF is the Founder and Former CEO of FTX, a cryptocurrency trade that lately collapsed and misplaced billions of {dollars}. A lot of the cash belonged to clients.

Based on a press launch issued by the Workplace of the Legal professional Basic, SBF was introduced into custody by The Royal Bahamas Police Drive after the USA Legal professional for the Southern District of New York shared a sealed indictment with the Bahamian authorities. The press launch additionally famous that the federal government will extradite SBF as quickly as U.S. officers request it.

“Because of the notification obtained and the fabric offered therewith, it was deemed acceptable for the Legal professional Basic to hunt SBF’s arrest and maintain him in custody pursuant to our nation’s Extradition Act,” an announcement attributed to Bahamian Legal professional Basic Ryan Pinder learn. “At such time as a proper request for extradition is made, The Bahamas intends to course of it promptly, pursuant to Bahamian regulation and its treaty obligations with the USA.”

A tweet posted by official governing workplaces in New York bolstered these statements, including that the federal authorities would transfer to unseal the indictment tomorrow morning. The costs included wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy, and cash laundering, mentioned an individual with data of the matter informed the New York Occasions.

Notably, the U.S. isn’t the one nation pursuing motion towards SBF.

In an announcement, Bahamian Prime Minister Philip Davis mentioned that his authorities was taking comparable steps. “The Bahamas and the USA have a shared curiosity in holding accountable all people related to FTX who might have betrayed the general public belief and damaged the regulation. Whereas the USA is pursuing prison costs towards SBF individually, The Bahamas will proceed its personal regulatory and prison investigations into the collapse of FTX, with the continued cooperation of its regulation enforcement and regulatory companions in the USA and elsewhere,” he mentioned.

Finally, FTX’s collapse took place because of reporting from CoinDesk, which revealed a extremely concentrated place in self-issued FTT cash, which Alameda Analysis — SBF’s hedge fund — was utilizing as collateral for billions in crypto loans. Shortly after the CoinDesk report, Binance CEO Changpeng Zhao mentioned his trade would promote its stake in FTT, citing “current revelations.” On the time, Zhao mentioned the transfer was danger administration, stemming from classes he realized from Luna, a cryptocurrency that collapsed in worth earlier in 2022.

Zhao’s announcement led to an enormous withdrawal of funds from FTX, which despatched costs plummeting. FTX froze belongings and declared chapter simply days later.

Subsequent reviews alleged that FTX combined its buyer funds with belongings from Alameda Analysis and that Alameda finally used shopper funds to do margin buying and selling. This uncovered the funds to huge losses. FTX’s newly appointed CEO, John J. Ray III, confirmed earlier immediately that billions in buyer deposits have been misplaced alongside the way in which. In remarks ready for the Home Monetary Providers Committee, Ray mentioned FTX went on a “spending binge” from 2021 to 2022 when roughly “$5 billion was spent shopping for a myriad of companies and investments, lots of which can be price solely a fraction of what was paid for them.”

This was a breaking story and was up to date.