Sam Bankman-Fried is scheduled to be transferred from the Bahamas

Sam Bankman Fried, founder and former CEO of the defunct exchange, was detained and brought into arrest by the Royal Bahamas Police on Monday at the request of the United States government, according to a tweet by the U.S. attorney for the Southern District of New York.

According to Williams, the arrest was predicated on a sealed indictment from the Southern District of New York, which would be opened in the United States on Tuesday morning.

CNBC quotes Bahamian Prime Minister Philip Davis as saying, “The Bahamas and the United States have a common interest in holding responsible any persons affiliated with FTX who may have breached the public trust and broken the law.”

Attorney General of the Bahamas Ryan Pinder told CNBC that the U.S. is likely to seek his extradition. The failure of Bankman-FTX Fried’s exchange resulted in billions of dollars in global damages and allegations of operational misbehaviour that were previously unknown to users and investors.

On November 11, FTX, previously one of the world’s biggest trading platforms for cryptocurrencies and valued at US$32 billion earlier this year, filed for Chapter 11 bankruptcy protection with Alameda Research and hundreds of other connected entities.

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