FTX founder Sam Bankman-Fried expected to drop fight against extradition to US

By admin On Dec 19, 2022

Sam Bankman-Fried arrived at a courthouse in the Bahamas early Monday and is expected to tell a judge he will not fight extradition to the US, where he faces multiple criminal and civil charges related to the collapse of cryptocurrency exchange FTX.

The decision comes just a week after Bankman-Fried’s lawyers had initially said that they planned to fight extradition. An extradition hearing had been scheduled for Febuary 8. His turnabout could speed up the timetable for him to be sent to the US.

Bahamian authorities arrested Bankman-Fried last Monday at the request of the US government.

Sam Bankman-Fried, co-founder and chief executive officer of FTX. (Bloomberg via Getty Images)

The former FTX CEO faces criminal charges in the US, including wire fraud and money laundering, as well as civil charges. The 30-year-old could potentially spend the rest of his life in jail.

Bankman-Fried’s downfall, from crypto evangelist to pariah, occurred with stunning speed. FTX filed for bankruptcy protection on November 11 when it ran out of money after the cryptocurrency equivalent of a bank run.

Before the bankruptcy, Bankman-Fried was considered by many in Washington and on Wall Street as a wunderkind of digital currencies, someone who could help take them mainstream, in part by working with policymakers to bring more oversight and trust to the industry.

Samuel Bankman-Fried, center, is escorted out of the Magistrate Court building the day after his arrest in Nassau, Bahamas, Tuesday, Dec. 13, 2022. (AP)

A fence topped with barbed wire surrounds the Magistrate Court building, where FTX founder Sam Bankman-Fried was expected to appear. (AP)

Bankman-Fried had been worth tens of billions of dollars — at least on paper — and was able to attract celebrities like Tom Brady or former politicians like Tony Blair and Bill Clinton to his conferences at luxury resorts in the Bahamas.

One prominent Silicon Valley firm, Sequoia Capital, invested hundreds of millions of dollars in FTX.

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US prosecutors and financial regulators painted a very different picture of Bankman-Fried and FTX last week. An indictment unsealed Tuesday alleging he played a central role in the rapid collapse of FTX and hid its problems from the public and investors.

The Securities and Exchange Commission said Bankman-Fried illegally used investors’ money to buy real estate on behalf of himself and his family.

The new CEO of FTX, John Ray III, told a congressional committee on Tuesday that there was nothing sophisticated about what Bankman-Fried was up to.

“This is just old fashion embezzlement, taking money from others and using it for your own purposes,” he said.