Sam Bankman-Fried arrest updates: Former FTX CEO denied bail due to flight risk

White House press secretary Karine Jean-Pierre would not engage when asked specifically about FTX founder Sam Bankman-Fried's arrest, and deferred to the Hatch Act when pressed if President Joe Biden planned to return the more than $5 million in donations that were given to his 2020 campaign.

The Hatch Act prevents federal employees, like Jean-Pierre, from engaging in political campaigning.

Jean-Pierre also wouldn't give Biden's opinion on the arrest and collapse of FTX. However, she was more willing to talk about what could be done to put regulations in place in the crypto sphere.

"This administration has consistently urged Congress to take action to address regulatory gaps posed by digital assets and support legislative efforts to enact crypto legislation to better protect American consumers that just last month Secretary [of the Treasury Janet] Yellen, in fact, called on Congress to 'move quickly to fill the regulatory gaps.' That's a quote that she said herself and the administration has identified what those gaps look like," Jean-Pierre told reporters. "But again, we have urged this is something for Congress to do."

U.S. Attorney Damian Williams urged politicians to return the millions of dollars donated by Bankman-Fried at a press conference earlier Tuesday.

-ABC News' Molly Nagle

Sam Bankman-Fried defrauded customers and investors in FTX as well as lenders to his hedge fund, Alameda Research, and he violated campaign finance laws, federal prosecutors in New York said Tuesday as they discussed the fruits of a "complex and sprawling" investigation.

The criminal charges came one month after FTX filed a $32 billion bankruptcy and U.S. Attorney Damian Williams said the investigation was ongoing and "moving very quickly."

Williams said he authorized charges against Bankman-Fried on Wednesday of last week. A grand jury returned an indictment Friday.

There are more than $8 billion in customer losses, said Gretchen Lowe of the Commodity Futures Trading Commission.

In addition to fraud and conspiracy, the indictment alleged Bankman-Fried violated campaign finance laws by making tens of millions of dollars in campaign donations -- to both Republicans and Democrats -- with stolen funds. The contributions were made in the name of Alameda Research with money taken from FTX, the indictment alleged.

Williams urged political campaigns and candidates who received donations from Bankman-Fried or Alameda to work with his office to return the money.

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Prosecutors provide details on Sam Bankman-Fried case

The Southern District of New York provided new details on the crimes allegedly committed by the former crypto CEO.

ABCNews.com

Bankman-Fried is fighting extradition from the Bahamas to New York to face all of these charges.

"Fraud is fraud," FBI Assistant Director Michael Driscoll said. "It does not matter the complexity of the investment scheme."

-ABC News' Aaron Katersky

Sam Bankman-Fried did not waive his rights to an extradition hearing as he made his first court appearance in the Bahamas on Tuesday.

Had he waived his rights, the U.S. would have been able to extradite Bankman-Fried immediately. It's unclear now how quickly an extradition could happen.

The court proceedings were still ongoing as of noon.

-ABC News' Will Gretsky

FTX CEO John Ray, who is overseeing the company’s bankruptcy proceedings, told House members on Tuesday that no separation existed between the operations of FTX and Alameda Research, a crypto hedge fund also founded by Bankman-Fried.

“There were virtually no internal controls and no separateness whatsoever,” Ray said.

Bankman-Fried faces accusations that FTX used deposits to pay Alameda Research creditors, a claim reportedly made by former Alameda Research CEO Caroline Ellison during a call in early November.

In an interview last week, Bankman-Fried told ABC News’ George Stephanopoulos that he was not aware that was true but said Alameda had a large position open on FTX that was "overcollateralized a year ago."

Ray told House members that FTX transferred several billion dollars in customer funds to Alameda Research.

When asked by Rep. Patrick McHenry, R-N.C., if there was a distinction between FTX and Alameda Research, Ray said, “Absolutely not. There’s no distinction whatsoever.”

“The owners of the company could run free reign,” Ray added, noting that Bankman-Fried owned 90% of Alameda Research.