US authorities say the former chief executive of the failed cryptocurrency exchange FTX Sam Bankman-Fried has been arrested in the Bahamas.
The US attorney’s office in New York on Monday said the founder of FTX was arrested at the request of the US government.
Mr Bankman-Fried is under criminal investigation by US and Bahamian authorities following the collapse last month of FTX.
The firm filed for bankruptcy on November 11, when it ran out of money after the cryptocurrency equivalent of a bank run.
“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the US Government, based on a sealed indictment filed by the United States Attorney’s Office for the Southern District of New York,” US attorney Damian Williams said in a statement.
“We expect to move to unseal the indictment in the morning and will have more to say at that time.”
Bahamian Attorney General Ryan Pinder said the Bahamas would “promptly” extradite Mr Bankman-Fried to the US once the indictment is unsealed and US authorities make a formal request.
FTX is headquartered in the Bahamas and, since its failure, Mr Bankman-Fried has remained in his Bahamian luxury compound in Nassau.
Mr Bankman-Fried said recently that he did not “knowingly” misuse customers’ funds, and said he believes his millions of angry customers will eventually be made whole.
Mr Bankman-Fried’s arrest comes just a day before he was due to testify in front of the House Financial Services Committee, along with the company’s current chief executive, John Ray III.
Mr Ray, who took over FTX on November 11 and is a long-time restructuring specialist, has said in court filings that the financial conditions at FTX were worse than at Enron.
Bahamian authorities plan to continue their own investigation into Mr Bankman-Fried.
“The Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law,” said Bahamian prime minister Phillip Davis in a statement.
The US Securities and Exchange Commission said it had authorised separate charges related to alleged violations of securities laws and would file them publicly on Tuesday.
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