The National Police made the arrest at the airport in Ibiza. | Daniel Espinosa

The National Police in Ibiza report having arrested a 52-year-old Briton who is wanted in the US for allegedly having defrauded a bank of 20 million dollars.

The police were acting on an international arrest warrant and extradition order. He was arrested at the airport in Ibiza, and the case was referred to the Audiencia Nacional high court in Madrid, which ordered his detention without bail. Following an appeal, he was released and will now be able to fight the extradition order while at liberty.

Interpol had issued the search and arrest warrant. He and others are alleged to have "participated in a scheme to artificially manipulate the exchange rate of the US dollar and the South African rand in order to defraud a subsidiary of a bank based in the southern district of New York". The fraud is valued at around 20 million dollars, and the district attorney's office in New York is seeking a 20-year prison sentence.