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Sam Bankman-Fried reverses decision to fight extradition to US: report

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Disgraced cryptocurrency tycoon Sam Bankman-Fried has decided to not contest extradition from the Bahamas to the US where he’s facing fraud charges.

The fallen 30-year-old FTX mogul was arrested Monday night after the Bahamian government received formal notification from the Justice Department that Bankman-Fried was charged with defrauding investors out of $1.8 billion.

He is predicted to announce his decision when he appears in court on Monday, a source aware of the case told Reuters.

The request would allow him to look in a US court to face wire fraud, money laundering and campaign finance charges,

Once he’s back on US soil, Bankman-Fried would likely be held at Brooklyn’s Metropolitan Detention Center, although some federal defendants are being held at other jails just outside of Recent York City as a consequence of overcrowding, defense lawyer Zachary Margulis-Ohnuma told the news outlet.

Bankman-Fried was arrested within the Bahamas on Monday.MEGA

Inside 48 hours of his return to the US, Bankman Fried would seem in a Manhattan court to enter a plea and a judge will make a determination regarding his bail, in line with Margulis Ohnuma. 

Prosecutors will likely argue that he’s a risk of flight and may remain in custody given the huge amounts of cash involved within the case, in line with Reuters.

Any possible trial could be greater than a 12 months away, legal experts said. He faces a maximum of 115 years in prison if convicted.

A spokesman for Bankman-Fried declined to comment to Reuters. 

Bankman-Fried, once estimated to be price $32 billion, has acknowledged risk management failings at FTX but has said he doesn’t consider he has criminal liability.

Sam Bankman-FriedBankman-Fried is predicted to be extradited to the US to face fraud and campaign violation charges.REUTERS

Earlier this week, he said in Bahamian court that he won’t waive an extradition hearing on being sent back to the US — where he faces a slew of federal charges, including fraud and making illegal campaign contributions.

It’s unclear what led the fallen tech mogul to vary his mind, nonetheless, he’s being held on the Bahamas’ notorious Fox Hill Prison — known to be overrun with rats and maggots and so bad that a warden has called it “not fit for humanity.”

Bankman-Fried spent Wednesday night within the infirmary of the Nassau prison that has been condemned by human rights officials for its inadequate medical and sanitary conditions to inmates.

On Tuesday he told a Bahamian judge to let him out of the jail citing his vegan weight loss program and apparent ADD diagnosis. His attorney proposed a $250,000 money bail but was denied after prosecutors argued he posed a flight risk. 

He made a second pitch for bail Thursday after a magistrate judge within the Caribbean country ordered Bankman-Fried remanded pending his potential extradition to the US, a source aware of the matter told Reuters.

Sam Bankman-Fried, founder and CEO of FTX, testifies during the House Financial Services Committee hearingBankman-Fried, 30, has been locked up in a notoriously Tom Williams/CQ-Roll Call/Sipa U

Bankman-Fried is accused of using billions of dollars in stolen deposits to pay for expenses, debts and put money into his crypto hedge fund, Alameda Research LLC.

Damian Williams, the highest federal prosecutor in Manhattan, described the the FTX implosion as one in all the “biggest financial frauds in American history.”

He said his office’s investigation is ongoing, and has urged individuals with knowledge of wrongdoing at FTX or Alameda to cooperate.

Ryan Salame, a top FTX executive, told securities regulators within the Bahamas on Nov. 9 that assets belonging to the exchange’s customers were transferred to Alameda to cover the hedge fund’s losses, in line with a document made public as a part of FTX’s bankruptcy proceedings in Delaware.

Bankman-Fried stepped down as CEO of FTX on Nov. 11 — the day the corporate filed for bankruptcy.

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