FTX Founder Arrested in Bahamas

Sam Bankman-Fried, who is under criminal investigation in both places over the collapse of the crypto firm he founded, was arrested Monday in the Bahamas after an indictment was filed against him in the US. The announcement was made by US Attorney Damian Williams, who said the US government had asked authorities in the Bahamas to make the arrest, the Washington Post reports. The indictment was filed by Southern District of New York prosecutors. The FTX founder had been scheduled to appear before the House Financial Services Committee in Washington on Tuesday. That's off, his lawyers said.

The multibillion-dollar cryptocurrency exchange imploded and filed for bankruptcy last month, costing its customers billions of dollars. The arrest of Bankman-Fried is federal regulators' first real move to hold someone responsible for FTX's failure, per CNBC. He's said he didn't knowingly misuse clients' money. In a Twitter Spaces interview on Monday, per Axios, Bankman-Fried had said, "I don't think I will be arrested." Williams said his office "will have more to say" once the indictment is unsealed Tuesday morning. (More Sam Bankman-Fried stories.)