Summary:
- Sources said Sam Bankman-Fried could arrive in the U.S. as early as Wednesday afternoon.
- Bankman-Fried was approved for extradition to face eight counts of criminal charges for fraud in FTX’s crash.
- SBF waives his right to contest U.S. extradition after spending a week at the Bahamas Fox Hill prison.
Sam Bankman-Fried will be extradited to the United States to stand trial on fraud and money laundering charges over FTX’s crash, per reports from the New York Times and Wall Street Journal.
Bankman-Fried could be arraigned in a Manhattan Federal District Court as early as Wednesday afternoon, NYT said. SBF was held at the Bahamas Fox Hill prison after his arrest earlier in December. However, no official timeline was disclosed.
Bankman-Fried was held in custody ahead of an extradition hearing after a judge denied his bail request. SBF seemingly planned to contest U.S. extradition pending a review of the Justice Department’s criminal indictment. Prosecutors from the Southern District of New York charged Bankman-Fried on eight counts including fraud and campaign finance violations.
The FTX founder waived his right to contest extradition during a hearing on Wednesday. SBF’s counsel Jerone Roberts submitted an affidavit with the decision and Bankman-Fried affirmed to the court saying “Yes, I do wish to waive my right to formal extradition proceedings.”
Sam Bankman-Fried To Stand Trial For Fraud
U.S. Attorneys charged Bankman-Fried with fraud over the collapse of FTX, a cryptocurrency exchange comingled with trading giant Alameda research, another piece of SBF’s crippled crypto empire.
Prosecutors also accused the FTX Founder of violating campaign finance laws. Bankman-Fried reportedly donated tens of millions to bipartisan U.S. lawmakers. The CFTC and SEC also charged SBF with defrauding customers, lenders, and investors.
In short, Sam Bankman-Fried stands accused of stealing customers’ assets on FTX to finance Alameda’s debts and trading capital. The charges argue that Bankman-Fried also instructed FTX employees to mask Alameda’s billions in liabilities on the crypto exchanges.
Bankruptcy CEO John Ray testified to congress that FTX crashed due to a lack of corporate controls and risk management at the company. SBF admitted to loose control at the FTX but denied any criminal liability or intent
