According to reports, on Monday local time, Sam Bankman-Fried, the founder of FTX, was arrested in the Bahamas on charges of fraud. His request for bail was refused at a hearing.
The judge said the former CEO and founder of the cryptocurrency trading platform was a flight risk and kept him in custody until February.
Bankman-Fried was detained this week at the request of U.S. officials, the judge said. A U.S. federal criminal indictment released on the same day charged Bankman-Fried with multiple counts, including wire fraud, money laundering and violation of campaign finance regulations.
The SEC also filed a civil lawsuit against Bankman-Fried alleging he defrauded investors and defrauded customers.
Bankman-Fried reportedly said in court that he could fight extradition to the United States. Prosecutors in the Bahamas have asked that his bail request be denied if he does so.
Bankman-Fried stepped down as CEO last month after cryptocurrency exchange FTX filed for bankruptcy after facing a multibillion-dollar liquidity crunch. Attorneys for the Southern District of New York charged Bankman-Fried with lying to investors and misusing client funds since the company was founded.
FTX’s new chief executive, John J. Ray III, testified Tuesday before the U.S. House Financial Services Committee that under Bankman-Fried, the company’s financial transactions ” There are no records.”
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