A day after FTX founder Sam Bankman-Fried was arrested in the Bahamas, FTX's new CEO told Congress the group's collapse stemmed from "mismanagement."
RELATED: FTX is facing a class action lawsuit. What we know about the company.
The founder of the failed cryptocurrency exchange FTX has been arrested in the Bahamas, and federal prosecutors in the United States have filed charges in New York.
"Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. Government, based on a sealed indictment filed by the SDNY," U.S. Attorney Damian Williams wrote in a statement shared on Twitter. "We expect to move to unseal the indictment in the morning and will have more to say at that time."
The specific charges were not revealed. But the Royal Bahamas Police Force said in a news release that Bankman-Fried was arrested in reference to "various Financial Offences against laws of the United States, which are also offences against laws of the Commonwealth of The Bahamas." Bankman-Fried will appear in local court on Tuesday, the release said.
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