Disgraced crypto tycoon arrested

NASSAU: Disgraced cryptocurrency tycoon Sam Bankman-Fried has been arrested in the Bahamas at the request of the US, according to American officials who are seeking to charge him after the sudden collapse of his FTX platform.

The arrest comes on the eve of Mr Bankman-Fried’s scheduled appearance at a US congress hearing in which he was to testify under oath about the crypto exchange’s demise.

The 30-year-old had in recent weeks defied legal advice and multiplied media appearances offering his version of his company’s sudden failure, usually by video link from the Bahamas where his company is headquartered.

“Earlier this evening, Bahamian authorities arrested Sam BankmanFried (pictured) at the request of the US government, based on a sealed indictment filed by the southern district of New York,” said a tweeted statement from Damian Williams, lead prosecutor for the district.

According to a press release from the attorney-general’s office in the Bahamas, Mr Bankman-Fried was to be held in custody before an expected request for his extradition.

He was arrested at his apartment complex in the capital Nassau and taken into custody without incident.

His FTX platform was plugged by celebrities in advertising campaigns and the cyber whiz kid became a regular presence in Washington where he gave tens of millions of dollars in political contributions.

But after reaching a valuation of $US32bn, FTX’s implosion was swift following a November 2 report on ties between FTX and Alameda, a trading company also controlled by Mr Bankman-Fried.

The report exposed Alameda’s balance sheet was heavily built on the FTT currency – a token created by FTX and with no independent value.

FTX is suspected of fraud for propping up Alameda with billions of dollars in customer funds that are now likely lost forever. Questions also linger over whether Mr BankmanFried engaged in market manipulation.