They pointed out that they are awaiting the extradition request from the United States.
The Bahamas Attorney General’s Office confirmed the arrest of the founder of bankrupt exchange FTX, Sam Bankman-Fried “SBF”, made on the afternoon of December 12 by the Royal Bahamas Police, at the request of United States on criminal charges.
The announcement comes a day before the supposed appearance of SBF before the United States Congress, where the former CEO had even indicated that he “was considering” attending, while congressmen urged him to present his version, while Bankman made a media tour.
Official Statement from the Attorney General of the Bahamas
In its official statement, the Office of the Attorney General & Ministry of Legal Affairs of the Bahamas explained the following:
“On December 12, 2022, the Bahamas Attorney General’s Office announces the arrest by the Royal Bahamas Police of Sam Bankman-Fried (“SBF”), former CEO of FTX. SBF’s arrest followed receipt of formal notice from the United States that it had filed criminal charges against SBF and is likely to request his extradition.”
In early December, the chair of the US House of Representatives Financial Services Committee, Maxine Waters, called on Sam Bankman-Fried to testify before the committee and not make excuses for not attending.
At the same time, Elon Musk revealed that SBF and FTX had “donated” to the Democratic Party of the United States, around a billion dollars, while the exchange had reported only 40 million dollars.
Bankman to Remain Imprisoned in the Bahamas
According to the Attorney General of the Bahamas, SBF will remain in custody until he is extradited to the United States; in addition, the authorities reaffirmed their intention “to comply” with the formal request “as soon as possible”, that is, they are just waiting until Washington submits the request.
In response to SBF’s arrest, Prime Minister Davis stated the following:
“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 violated the law. As the United States pursues criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere.”
SBF’s US media tour drew a barrage of criticism, including from Michael Saylor, who exposed in a recent interview FTX’s complex lending network that had been collateralized by its own unregistered securities, which Bankman-Fried allegedly manipulated.
According to Saylor, a famous Bitcoin maximalist and head of MicroStrategy’s Bitcoin acquisition strategy, Bankman-Fried essentially borrowed money from himself, as no traditional bank would lend money at the loan-to-value ratio allowed by US Bitcoin law. The authorities in the Bahamas say they are ready to extradite SBF.
By Audy Castaneda
