SBF returns to Bahamian prison as US extradition is postponed

Crypto Regulation
SBF returns to Bahamian prison as US extradition is postponed

Sam Bankman-Fried could be extradited to the United States today, but his sudden appearance in the court changed the game.

Bloomberg initially reported that SBF was likely to be extradited to the US as early as Monday, citing its sources. Later CNBC confirmed that he was ready to drop his extradition fight.

However, though SBF appeared in court earlier today, there are no proceedings on his extradition. According to Wall Street Journal, his lawyer Jerone Roberts was surprised to see him there. He claimed to the judge that he was not aware of Bankman-Fried’s plans, therefore, the hearings were postponed.

Bankman-Fried spent a little over a week at The Bahamas Department of Correctional Services after having bail denied last week. His next bail hearing before the Supreme Court is scheduled for Jan. 17.

The former FTX CEO initially wanted to oppose extradition to the United States, where he faces significant charges for allegedly defrauding FTX investors.

What charges will Bankman-Fried face in the US?

New York’s Southern District federal prosecutors filed eight counts of fraud and conspiracy against Bankman-Fried. If he is found guilty on all eight counts, he will face 115 years in jail.

In addition, US market regulators have filed civil complaints against him, alleging that he built a ‘house of cards’ while luring investors by making them believe that their cryptocurrency investment was one of the safest they could make.

Prosecutors allege that Bankman-Fried and others ran several scams. He purportedly used money from FTX customers to fund the activities of Alameda, a hedge fund he controlled. It is further alleged that he misled the investors in Alameda’s hedge fund as to the firm’s financial condition through erroneous communications.

According to the 14-page indictment, SBF also allegedly conspired to break federal election law by making contributions to candidates and political organizations from 2020 through November 2022.

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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.