Sam Bankman-Fried (SBF) is now under the custody of the police, as per the New York Times. According to the reports, the founder of the crypto exchange called FTX is the sole person against whom the charges of the indictment have been levelled. These charges take into account securities fraud, conspiracy to wire fraud, money laundering, as well as conspiracy to securities fraud. After the arrest of the entrepreneur, The US authorities are considering filing for his extradition. However, SBF has repeatedly negated such allegations in the past.

Bahamian Police Arrest Sam Bankman-Fried

The respective arrest is considered to be the most astonishing point in the case during the recent abrupt declines. The FTX founder was liable to testify in front of Congress regarding the crash of his exchange. FTX plummeted overnight in the previous month after the exposition of an 8 billion gap in the accounts thereof due to a run on its deposits. On Tuesday, the Southern District of New York-based prosecutors confirmed that the charges of indictment on Bankman-Fried would be brought to the front.

As specified by the Securities and Exchange Commission of the United States, the agency has authorized the respective charges against Bankman-Fried as he has supposedly been involved in violating the Securities laws. The Bahamian police have clarified that the FTX founder got arrested when he was at his apartment. Though there is an extradition treaty between the Bahamas and the United States, the procedure may take weeks to accomplish.

SBF to Appear in the Magistrate Court on Tuesday

As per a person acquainted with the matter, a very cooperative attitude was expressed by Bankman-Fried during his arrest. According to the schedule, he would appear in the Bahamian capital Nassau-based Magistrate Court on Tuesday. Philip Davis, the Prime Minister of the Bahamas, asserted that both nations have a mutual interest in the accountability of those who are linked to the FTX debacle. He suspects that someone may have deceived the common people along with violating the law.

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The United States-based Department of Justice had been keenly looking into the FTX case. The objective was to find out if the crypto exchange had inadequately transacted hundreds of millions before the bankruptcy filing. The arrest takes place a day before the testimony of SBF in front of the House Committee on Financial Services.