American entrepreneur and founder of the collapsed cryptocurrency exchange FTX, Sam Bankman-Fried, has been arrested in Bahamas.
According to BBC News, in the nation’s capital, Nassau, a magistrates court, he is expected to make an appearance on Tuesday.
Last month, FTX filed for bankruptcy in the US, leaving many users unable to withdraw their funds.
According to a court filing last month, FTX owed nearly $3.1 billion (£2.5 billion) to its 50 largest creditors.
Damian Williams, US Attorney of the Southern District of New York (SDNY), confirmed the arrest in a tweet on Monday night.
Williams said the arrest was based on a sealed indictment filed by the SDNY.
Bankman-Fried was once viewed as a young version of legendary US investor Warren Buffett, and as recently as late October, his net worth was estimated at more than $15 billion.
He had become well known in Washington DC as a political donor, mostly to Democratic politicians or groups, supposedly supporting pandemic prevention and improved crypto regulation.
Bankman-Fried will be held in custody “pursuant of our nation’s Extradition Act,” the Attorney General of the Bahamas said in a statement.
“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the US Government, based on a sealed indictment filed by the SDNY [Southern District of New York].
“We expect to move to unseal the indictment in the morning and will have more to say at that time.” the US Attorney’s office in Manhattan said in a tweet.