Bankrupt Crypto Exchange FTX Founder Arrested

Sam Bankman-Fried, the founder of the bankrupt crypto exchange FTX, has been arrested in the Bahamas. Fried's arrest in the Bahamas comes after US prosecutors filed criminal charges. Fried can now be extradited to the US. A spokeswoman for the US Attorney's Office in Manhattan confirmed the arrest of Bankman-Fried.
Fried's $16 billion wealth was reduced to zero in just a few days after the FTX mess came to light. At one point Sam Bankman's net worth reached $26 billion. The reason for the decline in net worth is the bankruptcy of FTX Trading Limited following a liquidity crunch.
FTX was the second largest affiliated crypto trading company in the world. FTX Trading Limited, which came under a liquidity crunch (financial crisis) due to financial disturbances, has gone bankrupt. According to a report by the news agency Reuters, Sam Bankman-Fried secretly transferred $10 billion in customer funds from FTX to its trading arm, Alameda Research. Almeida used this fund for trading.
Crypto publication CoinDesk published a report on a leaked balance sheet when the firm suffered huge losses in trading. The turmoil began at FTX after this report surfaced. FTX received an estimated $6 billion in withdrawal requests in three days. FTX suddenly got into a liquidity crunch with so many withdrawal requests that means it was not in a position to process the withdrawal requests. After this, he put a request to be bankrupt.