FTX’s Bankman-Fried ‘Set To Agree To Extradition’

Disgraced former FTX chief excutive Sam Bankman-Fried is expected to appear in court in the Bahamas on Monday to agree to be extradited to the United States to face fraud charges, according to several reports.

Bankman-Fried, former head of what was once one of the world’s biggest cryptocurrency exchanges, was arrested a week ago in the Bahamas, where he lives and where FTX is based.

He initially said he would fight extradition and was denied bail after being deemed a flight risk.

Bankman-Fried was remanded the country’s Fox Hill prison, described in a 2021 US State Department report as having “harsh” conditions. The Bahamas says conditions have since improved.

Fraud charges

Following the arrest US regulators charged Bankman-Fried with deliberately defrauding lenders and investors, as well as conspiring to launder money and violating US campaign finance laws.

Federal prosecutors for the Southern District of New York in Manhattan said Bankman-Fried stole billions of dollars in FTX deposits for use by Alameda Research, his hedge fund.

US market regulators filed additional civil charges, alleging he “built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto”.

The former chief executive has acknowledged were management failings at the company but denied criminal liability.

Extradition

Upon extradition Bankman-Fried would appear before a judge in Manhattan for an arraignment and bail hearing.

It is rare in the US for defendants in significant non-violent financial cases to be denied bail, although they may be required to pay large dollar amounts and submit to strict monitoring conditions.

FTX filed for bankruptcy in November after a multi-billion dollar hole was found in its balance sheet.