U.S. and Bahamian authorities said Monday that former FTX CEO Sam Bankman-Fried had been arrested in the Bahamas at the U.S. government's request.

The authorities have begun a criminal investigation into Bankman-Fried following the collapse of FTX cryptocurrency last month.

On November 11, the company declared bankruptcy when it ran out of money, which is considered in cryptocurrency as a bank run, per Associated Press News.

Southern District of New York U.S. Attorney Damian Williams said a sealed indictment his agency filed led to the arrest of Samuel Bankman-Fried by Bahamian officials. They plan to take the necessary steps to unseal the indictment and issue more comments in the morning.

Bankman-Fried was arrested the day before he and the company's current CEO, John Ray III, were scheduled to testify before the House Financial Services Committee.

Once the indictment is released, and U.S. officials make a formal request, the Bahamas would "promptly" extradite Bankman-Fried to the United States, according to Attorney General Ryan Pinder of the Bahamas. In the interim, Bahamian officials intend to continue their probe into Bankman-Fried.

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Former FTX CEO Sam Bankman-Fried Arrest

According to a statement released by the Bahamas Police, Bankman-Fried was taken into custody at his Albany, Nassau, The Bahamas, residence at around 6:00 p.m. (2300 GMT) on Monday.

The statement said that he was taken into custody without incident and is scheduled to appear in the Magistrate Court in Nassau on Tuesday for various Financial Offenses against laws of the United States, all of which are offenses against the laws of the Commonwealth of The Bahamas.

According to Reuters, a spokesman for the U.S. Attorney's office in Manhattan confirmed that Bankman-Fried was arrested in the Bahamas. Still, they would not comment on the charges.

Even more so, Bankman-Fried's attorney, Mark Cohen, who was contacted for comment, has yet to respond.

Furthermore, Bankman-Fried was slated to appear before the U.S. Congress via video link on Tuesday, and his arrest took place on Monday, the day before his testimony was set to broadcast.

U.S. House Financial Services Committee hearings on the FTX collapse were scheduled to begin at 10 a.m. ET, with testimony from Bankman-Fried and current FTX CEO John Ray (1500 GMT).

Binance and Some Famous Personalities Are Under Investigation Following FTX Bankruptcy

Coincident with the U.S. government's prosecution against former FTX CEO Sam Bankman-Fried is a possible investigation into Binance, the largest cryptocurrency exchange.

It has been reported that Binance may have broken sanctions or engaged in money laundering. Others within the department, the sources say, have pushed for a longer evaluation period.

A Binance representative said they do not know the inner workings of the U.S. Justice Department, nor would it be appropriate for them to comment if they do.

Several athletes and celebrities who "aggressively marketed" the company are reportedly included as defendants in the lawsuit.

It named several athletes, such as Tom Brady, Stephen Curry, Shaquille O'Neal, Udonis Haslem, David Ortiz, Trevor Lawrence, Shohei Ohtani, and Naomi Osaka.

The complaint states that the defendants "promoted, assisted, and deeply participated" in the fraud, Bleacher Report noted.

Edwin Garrison of Oklahoma is leading a class action lawsuit against FTX, claiming the company was created to scam unsuspecting investors around the country.

Meanwhile, Prime Minister Phillip Davis of the Bahamas has stated that his country and the United States share a goal of bringing to justice any individuals associated with FTX who may have committed criminal acts.

Former FTX CEO Sam Bankman-Fried recently claimed that he did not "knowingly" mishandle consumer funds and that he anticipates paying back his millions of angry customers.

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Written by: Bert Hoover

WATCH: Former FTX CEO Sam Bankman-Fried arrested in Bahamas - From ABC7