Bahamian authorities confirmed SBF’s arrest

Williams’ announcement was preceded by a notice from the Bahamian authorities confirming the arrest:

“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 broken the law. While the United States is pursuing 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”

After FTX filed for Chapter 11 protection, new CEO John Ray III bashed the company’s mismanagement in a court filing. “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” wrote Ray, who led Enron through its bankruptcy proceedings.

Bankman-Fried had been scheduled to testify before the US House of Representatives on Tuesday, Dec. 13.

The US House Committee on Financial Services chairwoman Maxine Waters, who was tasked with organizing the hearing, reacted to the news in a press statement: “The public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity. While I am disappointed that we will not be able to hear from Mr. Bankman-Fried tomorrow, we remain committed to getting to the bottom of what happened, and the Committee looks forward to beginning our investigation by hearing from Mr. John Ray III tomorrow.”

This story was updated with a comment from congresswoman Maxine Waters.

📬 Sign up for the Daily Brief

Our free, fast, and fun briefing on the global economy, delivered every weekday morning.