The Royal Bahamas Police Force arrested FTX founder Sam Bankman-Fried after the US filed criminal charges against him.
It is expected that the United States will request the Bahamas to extradite Bankman-Fried as soon as possible.
Charges could include wire fraud, securities fraud, money laundering and related conspiracy charges.
The arrest of Bankman-Fried is the first concrete step by regulators to hold individuals accountable for the multibillion-dollar collapse of FTX last month.
Before his arrest was announced, Bankman-Fried was expected to virtually testify before the House Financial Services Committee, but his attorneys said he would not appear.