Summary:
- Three major publications reported that Bankman-Fried won’t contest his extradition to the U.S.
- Sources said the FTX founder will appear in court on Monday to update the judge on his decision.
- Bahamas police arrested SBF on December 12 a few hours before the CFTC, SEC, and U.S. prosecutors from the South District of New York filed fraud charges against the former crypto billionaire.
Sam Bankman-Fried is expected to surrender to U.S. extradition laws as authorities prosecute the former FTX crypto exchange founder for fraud and money laundering. Bankman-Fried will appear before a Bahamas court later on Monday to reverse his earlier decision, per reports from three media outlets.
Bahamas authorities arrested SBF on December 12 following a formal request from the Southern District of New York (SDNY) prosecutors. Sam Bankman-Fried appeared before a judge and contested extradition to the United States where he faces several allegations of fraud and money laundering. SBF’s $250,000 bail request was also denied, EthereumWorldNews reported.
Reports from CNBC, Reuters, and the Washington Post cited sources close to Bankman-Fried who claimed that the fallen founder no longer planned to fight extradition to the U.S. Bahamas Fox Hill prison staff were also cited as sources.
As previously reported, SBF’s extradition hearing will take place on February 8, 2023, barring any changes. Sam Bankman-Fried could remain in Bahamas custody until then, in a prison that many describe as harsh and unforgiving.
DOJ Filed Eight (8) Charges Against Sam Bankman-Fried
Indeed, the former FTX CEO was charged on eight counts including fraud on customers, lenders, and investors. SBF also faces money laundering charges and campaign finance violations.
The Commodity Futures Trading Commission (CFTC) also filed a complaint against SBF with damning allegations. CFTC officials accused Sam Bankman-Fried of diverting billions in customer funds to Alameda Research, his trading giant.
According to the CFTC, Alameda was already insolvent by May/June 2022 when Terra collapsed. The CFTC alleged that Alameda’s use of customer funds drastically increased after Luna and UST’s $40 billion wipeout.
Also, the Securities and Exchange Commission (SEC) charged Sam Bankman-Fried with defrauding users and lenders alike.