Sam Bankman-Fried, the former head of bankrupt cryptocurrency exchange FTX, was arrested Monday night by authorities in the Bahamas at the request of the U.S. government, a U.S. attorney confirmed.

Bankman-Fried was arrested based on an indictment filed by the Southern District Court of New York, according to a court statement citing U.S. Attorney Damian Williams. The indictment is likely to be unsealed Tuesday morning, according to Williams.

Also, the Bahamas Attorney General’s Office said Bankman-Fried faces potential extradition to the US.

The arrest of the former FTX CEO came on the eve of Tuesday’s congressional hearing, where Bankman-Fried was scheduled to testify remotely. He also reportedly refused to testify at Wednesday’s Senate Banking Committee hearing on the collapse of FTX.

FTX, once the world’s second-largest crypto exchange, filed for bankruptcy in November after reports that it misappropriated customer funds, sparking a string of withdrawals.

FTX allegedly spent and traded customer funds through Bankman-Fried’s trading firm Alameda Research.

In a series of interviews given after the bankruptcy, Bankman-Fried attempted to downplay the fraud allegations, instead attributing the alleged misappropriation of client funds to poor capital controls and accounting errors. He resigned as CEO of FTX on the same day the bankruptcy filing was made.

The exchange and its U.S. affiliate suspended withdrawals in November, but there is no word on when customers will be able to withdraw their funds. At least $1 billion in customer funds are listed as unaccounted for.

The exchange’s bankruptcy has caused unrest in the cryptocurrency market, a major blow after a prolonged drop in prices this year. It also triggered the bankruptcy of several companies that were linked to FTX, including lenders BlockFi and Voyager Digital.

The cryptocurrency market has lost more than two-thirds of its market capitalization over the past year as interest rate hikes and increased scrutiny have caused token prices to plummet.

The exchange rate of the world’s largest cryptocurrency, BTC has fallen more than 75% from its record high reached in November 2021.