Sam Bankman-Fried Signs Legal Papers Clearing Way for US Extradition to Face Fraud Charges, Official Says

Sam Bankman-Fried Signs Legal Papers Clearing Way for US Extradition to Face Fraud Charges, Official Says
Sam Bankman-Fried Signs Legal Papers Clearing Way for US Extradition to Face Fraud Charges, Official Says

FTX founder Sam Bankman-Fried has signed authorized papers paving the way in which for his extradition from The Bahamas to the United States, the place he faces fraud prices over the cryptocurrency trade’s collapse, a Bahamas official mentioned on Tuesday.

Doan Cleare, The Bahamas’ performing commissioner of Corrections, informed Reuters the paperwork had been signed round midday on Tuesday. A listening to in Bankman-Fried’s case will happen on Wednesday at 11:00am EST (9:30pm IST), a court docket official informed Reuters.

Wednesday’s continuing may set the stage for the 30-year-old cryptocurrency mogul to depart the Caribbean nation, after a number of days of confusion in regards to the standing of Bankman-Fried’s extradition.

A US-based lawyer for Bankman-Fried didn’t reply to requests for remark. An individual acquainted with the matter mentioned Bankman-Fried intends to consent to extradition. Bankman-Fried has acknowledged risk-management failures at FTX, however has mentioned he doesn’t imagine he has legal legal responsibility.

A spokesman for the US legal professional’s workplace in Manhattan declined to remark.

Bankman-Fried was arrested last week in The Bahamas, the place he lives and the place FTX was primarily based, after a grand jury sitting in Manhattan federal court docket indicted him for allegedly stealing buyer funds to plug losses at Alameda Research, his crypto hedge fund.

He initially informed a Bahamas court docket he would contest extradition, however Reuters and different shops reported over the weekend that he would reverse his choice.

During a court docket listening to on Monday at which Bankman-Fried appeared, his native defence lawyer Jerone Roberts mentioned he had not been knowledgeable of the aim of the continuing. He later mentioned that whereas his shopper had seen an affidavit laying out the fees in opposition to him, he needed to entry the entire indictment earlier than agreeing to extradition.

Earlier on Tuesday, Roberts declined to remark as he departed Magistrate Court in capital Nassau. US embassy officers earlier entered the courthouse, a Reuters witness mentioned, however Bankman-Fried was not seen on Tuesday.

Fall from Grace

The arrest capped a shocking fall from grace for Bankman-Fried, who rode a increase within the values of bitcoin and different digital belongings to change into a billionaire a number of instances over.

He has been underneath rising scrutiny since early November, when clients raced to withdraw funds from FTX amid considerations over commingling of their belongings with Alameda.

Damian Williams, the highest federal prosecutor in New York City, mentioned final week that Bankman-Fried’s actions amounted to “one of many largest monetary frauds in American historical past.”

The $32 billion (roughly Rs. 2,64,700 crore) trade declared chapter on November 11, and Bankman-Fried stepped down as CEO the identical day.

He has since been detained at The Bahamas Department of Corrections in Nassau, previously generally known as Fox Hill jail. The US State Department in a 2021 report described circumstances on the facility as “harsh,” citing overcrowding, rodent infestation and prisoners counting on buckets as bathrooms.

Local authorities say circumstances have since improved.

© Thomson Reuters 2022

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