The founder of the crypto exchange, FTX, Sam Bankman-Fried, has been arrested by Bahamian authorities in relation to the collapse of the exchange, CNBC reports.

The arrest is the first move by regulators to hold those accountable for the multi-billion dollar implosion.

Bahamian regulators are said to be working with the US, who are likely to request Bankman-Fried’s extradition to face trial in the US.

Timeline of FTX Collapse:

Just House Cleaning: Binance To Liquidate Own FTX TokensBREAKING: Binance Signs Deal to Acquire FTX ExchangeFTX Token Price Drops 80% as News of Binance Buying FTX SurfaceBinance CEO Denies FTX ConspiracyBinance Will No Longer Acquire FTXWhat Happened? BlockFi Files for Bankruptcy Amid FTX Crypto ContagionReport: BSP Asks Local VASPs of FTX Exposure, Exchanges Respond

FTX attorneys earlier accused the Bahamian government of working with Bankman-Fried to move FTX assets out of the company and into crypto wallets controlled by Bahamian regulators.

The collapse of FTX was triggered by a report from Coindesk revealing that a large portion of its money was made up of its own FTX tokens. It was also found that the company had violated its own terms and conditions by mixing funds with Alameda, a trading firm founded by Bankman-Fried.

Binance CEO Changpeng Zhao said it would liquidate all of its FTTs, but the planned acquisition of FTX by Binance fell through the next day.

FTX filed for bankruptcy and Bankman-Fried stepped down from his position.

This is a developing story.

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Filed under: Bitcoin - @ December 13, 2022 12:35 am