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Authorities may reportedly bring Sam Bankman-Fried in for questioning as FTX Bahamas files for bankruptcy

Nov 16, 2022, 20:59 IST
Business Insider
Sam Bankman-Fried.Getty Images
  • US and Bahamian authorities are in talks to potentially bring Sam Bankman-Fried to the US for questioning, Bloomberg reported Tuesday.
  • Bankman-Fried has been cooperating with Bahamian authorities, per the report.
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Authorities in the US and Bahamas are in talks to possibly bring Sam Bankman-Fried to the US for questioning, according to Bloomberg.

Law enforcement officials in the two countries have been in ongoing communication as details about FTX's implosion continue to surface, the report said.

Sources told Bloomberg that 30-year-old Bankman-Fried, who resigned from his position as FTX Group CEO when the company filed for Chapter 11 bankruptcy on Friday, has so far been cooperating with Bahamian authorities. Bahamian police interviewed Bankman-Fried on Saturday.

There has yet to be anyone taken into custody or put under arrest, the report noted.

FTX didn't immediately respond to a request for comment, and a lawyer for Bankman-Fried didn't respond to Bloomberg's request for comment.

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Earlier reports have said that the Securities Exchange Commission, Commodity Futures Trading Commission and Justice Department are investigating FTX for potential mishandling of client funds. The SEC is also reportedly investigating Bankman-Fried himself.

Prior to FTX's collapse, the crypto exchange reportedly transferred billions of client funds to Bankman-Fried's Alameda Research trading firm.

Meanwhile, the Bahamas branch of FTX filed for Chapter 15 bankruptcy in New York on Wednesday. A Chapter 15 filing is for companies to navigate insolvencies that span more than one country.

FTX said earlier this week in a separate court filing that it could have over 1 million creditors, 10 times its initial estimate, and its restructuring team is in talks with "dozens" of regulating bodies globally to secure client accounts and assets.

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