The Bahamas police have detained Sam Bankman-Fried, the creator of the defunct cryptocurrency exchange FTX, according to the country’s attorney general.
According to authorities in the Caribbean island, he will appear in a magistrates court in The Bahamas on Tuesday.
According to police, Mr. Bankman-Fried was arrested for “Financial Offenses” violating US and Bahamas laws.
FTX declared bankruptcy in the United States last month, rendering many users unable to withdraw their cash.
It is unclear how much money customers who have funds in the exchange would receive at the end of the bankruptcy process, however, numerous experts have cautioned that it may be only a portion of what they placed.
The FTX exchange allowed customers to exchange regular currency for cryptocurrencies such as Bitcoin. Mr. Bankman-Fried will be held in custody “in accordance with our nation’s Extradition Act,” the Bahamas Attorney General said in a statement.
