Ex-FTX CEO set for extradition to the US

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Crypto Regulation
Ex-FTX CEO set for extradition to the US

Several news outlets report that FTX founder Sam Bankman-Fried has signed extradition documents after earlier hesitation following his court appearance in the Bahamas.

Bankman Fried to face charges in the US 

After reportedly signing paperwork waiving an extradition hearing from the Bahamas, the disgraced ex-CEO will now be flown to the United States for prosecution following the collapse of FTX, according to Doan Cleare, the interim commissioner of Corrections. 

The commissioner confirmed that the paperwork was signed on Tuesday at midday. Court officials have announced that Fried’s hearing will take place on Wednesday at 11 a.m. EST (1600 GMT).

Sam Bankman-Fried failed to show up to court on Tuesday despite lawyers and US consular authorities waiting for more than two hours. The hearing on Monday was so confusing that he ultimately chose not to waive extradition. The judge deemed the hearing futile and ordered him to remain in prison pending further proceedings.

Following his court appearance on Wednesday, he will likely be taken to New York to face an eight-count indictment related to allegations that he stole billions from FTX clients and investors. The hearing to decide whether he would consent to extradition to the United States was held on Monday.

While this move was anticipated on Monday, he didn’t make it. Bankman-Fried, however, requested to see the US indictment and consult with his legal team on Monday during the hearing in New York.

The judge allowed him to make a phone call while his Bahamian lawyer was there.

In the end, he consented to a waiver of extradition that would have prevented his transfer to the US for prosecution.

The fall of FTX

Due to an unusual influx of withdrawal requests from customers, crypto exchange FTX filed for bankruptcy in November. Due to this event, approximately one million users lost everything.

Right after the crash, authorities in New York, United States, brought charges against Mr. Bankman-Fried for securities fraud, wire fraud, violating campaign fundraising regulations, and money laundering.

Separately, Gary Gensler, the head of the United States federal body responsible for stock market surveillance, the Securities and Exchange Commission, stated he had stolen billions of dollars from the trading platform’s users to enrich himself and create his crypto empire.

As far as he is concerned, the previous CEO of FTX misled the customers when he claimed that the exchange was among the most secure in the cryptocurrency industry.

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Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.