Sam Bankman-Fried, the disgraced co-founder of digital-asset exchange FTX, was arrested in the Bahamas after the U.S. government filed a criminal indictment, following weeks of speculation that client funds were misused before his empire’s collapse.

Bankman-Fried is being held in custody pending an extradition process, the island nation’s attorney general, Ryan Pinder, said in a statement Monday.

Federal prosecutors in Manhattan plan to unseal the case against him Tuesday morning, "and will have more to say at that time,” Damian Williams, U.S. attorney for the Southern District of New York, said in a separate statement. He didn’t elaborate on the allegations.