FTX’s former CEO arrested in Bahamas; U.S. files criminal charges

By Sarah Lizee

Olympia, Wash., Dec. 13 – FTX Trading Ltd.’s founder and former chief executive officer, Sam Bankman-Fried, was arrested Monday night by the Royal Bahamas Police Force and is being held in custody, according to a statement from the Attorney General of the Bahamas.

The arrest followed formal notification from the United States that it has filed criminal charges against Bankman-Fried and is likely to request his extradition.

According to an eight-count indictment unsealed in a Manhattan federal court on Tuesday, Bankman-Fried has been charged with two counts of wire fraud conspiracy, two counts of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years.

He is also charged with conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to defraud the United States and commit campaign finance violations, each of which carries a maximum sentence of five years.

“The Justice Department has filed charges alleging that Samuel Bankman-Fried perpetrated a range of offenses in a global scheme to deceive and defraud customers and lenders of FTX and Alameda, the defendant’s crypto hedge fund, as well as a conspiracy to defraud the United States government,” attorney general Merrick B. Garland said in a statement.

“We allege that the defendant conspired to defraud customers by misappropriating their deposits; to defraud lenders; to commit securities fraud and money laundering; and to violate campaign finance laws.

“As this indictment demonstrates, the U.S. Department of Justice will aggressively investigate and prosecute alleged criminal wrongdoing in the financial system and violations of federal elections laws. We will continue to work to ensure U.S. capital markets operate honestly and with the integrity that investors, lenders, and the American people are entitled to.”

FTX has headquarters in The Bahamas. The company filed Chapter 11 bankruptcy on Nov. 11 under case number 22-11068.

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