Sam Bankman-Fried, an American entrepreneur and the man behind the defunct cryptocurrency exchange FTX, was detained in the Bahamas on Tuesday.
On Tuesday, the BBC reported that he would appear in a magistrates court in Nassau, the capital.
A bankruptcy filing in the United States last month by FTX has left many customers unable to access their money.
It was reported in court last month that FTX owes its 50 largest creditors a total of about $3.1 billion (£2.5 billion).
US Attorney for the Southern District of New York (SDNY) Damian Williams tweeted Monday night that an arrest had been made.
Williams stated that the arrest was made due to an SDNY indictment filed under seal.
As recently as late October, Bankman-Fried’s net worth was projected to be over $15 billion, earning him comparisons to famed US investor Warren Buffett at a younger age.
He was well-known in the nation’s capital as a political donor, primarily to Democrats. His donations were made to prevent global pandemics and bolster crypto regulations.
The Attorney General of the Bahamas issued a statement saying that Bankman-Fried would be detained “pursuant to our nation’s Extradition Act.”
“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the US Government, based on a sealed indictment filed by the SDNY [Southern District of New York].”
In a tweet, the US Attorney’s office in Manhattan indicated that they planned to proceed to unseal the indictment the following morning and would provide further comment then.