FTX went bankrupt because the company didn’t have enough money to pay back users’ credits. This is in part because client assets were transferred from FTX to the Alameda investment fund, also owned by Bankman-Fried. There they got stuck in investing.
Initially, Bankman-Fried sought to challenge his extradition to the United States. That he now agrees goes against the advice of his attorney in the Bahamas, the latter told the New York Times, among others, on Monday.
Bankman-Fried’s attorney’s announcement was preceded Monday by a chaotic hearing in the Bahamas, during which the American businessman first indicated he wanted more time to review the charges against him. Later that day, he announced through his attorney that he still wanted to stand trial in the United States.
The 30-year-old Bankman-Fried became a multi-billionaire thanks to the cryptocurrency boom in 2020 and 2021. The client funds he embezzled, according to US authorities, Bankman-Fried invested in luxury real estate and campaign contributions for Democratic politicians and Republicans who ran for office earlier this year.
