FTX founder Sam Bankman-Fried (second from left) was handcuffed by officers of the Royal Bahamas Police Force in Nassau. Bahamas on December 13, 2022
Mario Duncanson | AFP | Getty Images
FTX founder and former CEO Sam Bankman-Fried will no longer contest his extradition to the United States, an issue he faces just days after being sent to a Bahamian prison to await trial. A person familiar with the matter told CNBC.
The former crypto billionaire will appear in a Bahamian court on Monday to formally waive his extradition rights. This would clear the way for federal officials to secure his return to the United States.
Extradition between the Bahamas and the United States is dictated by a 1991 treaty. In practice, this process takes months or even years to complete. Because the defendant has multiple appeals, Bankman-Fried’s legal team initially said they intended to fight extradition. The rethink will postpone the timeline for a Federal Bankman-fried trial significantly
The 30-year-old MIT grad was initially set to face his next hearing in February 2023.
Agent Bankman-Fried declined to comment
Bankman-fried Monday was filed in federal court in New York. on charges of wire fraud securities fraud Conspiracy to commit US fraud and money laundering if convicted He faces life in prison. Former FTX CEO also faces concurrent charges from the Securities and Exchange Commission and the Commodity Futures Trading Commission for similar allegations that he worked to defraud billions of dollars of FTX customers since 2007. 2019, the year the exchange was founded
At the heart of the Bankman-Fried realm is Alameda Research, a cryptocurrency hedge fund that federal regulators have accused of using FTX client funds to trade, losing billions of dollars.
FTX’s fall was accelerated when a CoinDesk report revealed highly concentrated positions in FTT itself, as stated by cryptocurrency hedge fund Alameda Research. Bankman-fried Used as collateral for billions in crypto loans, rival exchange Binance announced it would sell its stake in FTT, prompting massive withdrawals. The company freezes its assets and files for bankruptcy the next day. The SEC and CFTC charges allege that FTX pooled client funds into cryptocurrency hedge funds. Bankman-Fried, Alameda Research and billions in customer deposits disappeared along the way.
