Former FTX CEO Sam Bankman-Fried has been arrested

FTX failed a cryptocurrency version of a bank run last month. Ex-CEO Sam Bankman-Fried was scheduled to testify before Congress on Tuesday.

NEW YORK — Sam Bankman-Fried, the former CEO of failed cryptocurrency firm FTX, has been arrested in the Bahamas, the US Attorney’s Office for the Southern District of New York said Monday.

Prosecutors said Bankman-Fried was arrested by Bahamian authorities “at the request of the US government” on the basis of a sealed indictment.

The charges are expected to be unsealed Tuesday morning.

The former CEO of the failed cryptocurrency firm was scheduled to testify before a congressional committee on Tuesday, his first appearance under oath since FTX filed for bankruptcy about a month ago. Bankman-Fried was scheduled to testify before the House Financial Services Committee.

Bahamas Attorney General Ryan Pinder said the Bahamas would extradite Bankman-Fried to the US “promptly” once the indictments were unsealed and US authorities made a formal request. Meanwhile, Bahamian authorities plan to continue their own investigation into Bankman-Fried.

“The Bahamas and the United States have a common interest in holding accountable all individuals associated with FTX who may have betrayed public trust and broken the law,” Bahamian Prime Minister Phillip Davis said in a statement.

FTX failed last month in a cryptocurrency version of a bank run, as clients attempted to withdraw their assets in one go amid growing doubts about the financial strength of the company and its affiliated trading arm, Alameda Research. Since its collapse, FTX’s new management has dubbed the cryptocurrency exchange’s management as “total failure of corporate controls.”

Bankmann-Fried said that recently He has not “knowingly” misused his clients’ funds and said he believes his millions of disgruntled clients will eventually recover. Former FTX CEO Sam Bankman-Fried has been arrested

Laura Coffey

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