Sam Bankman-Fried, the disgraced cryptocurrency executive, will be flown back to the United States to face fraud charges in federal court after telling a judge in the Bahamas on Wednesday that he agreed to be extradited.
Mr. Bankman-Fried will soon arrive in New York to face charges of bank fraud, securities fraud, money laundering and a campaign finance violation. His departure from the Bahamas was delayed several hours as officials finalized final paperwork, but the local government eventually announced that Mr. Bankman-Fried would leave the country on Wednesday evening.
Once in New York, he will face charges in the Federal District Court in Manhattan, although the exact timing of the proceedings remains unclear. The allegations stemmed from the collapse of Mr Bankman-Fried’s crypto exchange, FTX, which was based in the Bahamas until its bankruptcy last month.
Bankman-Fried, 30, has been in custody in the Bahamas since he was arrested Dec. 12 at his luxury apartment complex. On Wednesday, he confirmed in Magistrate Court that he had signed documents approving the extradition. His lawyer, Jerone Roberts, said Mr Bankman-Fried was “anxious about leaving the Bahamas” and hoped to travel as early as Wednesday.
In court, Mr Bankman-Fried told the magistrate, Shaka Serville, that he “did a good job”. Asked if he was in good health, Mr Bankman-Fried replied: “Yes.”
What you need to know about the collapse of FTX
What is FTX? FTX is a now-bankrupt company that used to be one of the world’s largest cryptocurrency exchanges. It enabled customers to trade digital currencies for other digital currencies or traditional money; it also had a native cryptocurrency known as FTT. Based in the Bahamas, the company built its business on risky trading options that are not legal in the United States.
Mr. Bankman-Fried wore a white shirt and blue suit, with a plastic bag on his lap; he arrived after a breakfast of toast and jam at Fox Hill, the notorious Bahamian prison where he had been held for the past week, according to the facility’s chief administrator, Doan Cleare.
Once Mr. Bankman-Fried is extradited, Mark Cohen, a New York attorney, is expected to oversee his criminal defense.
Even before the extradition, Mr. Bankman-Fried in the United States with federal prosecutors about a possible bail package. Under the terms discussed, Mr. Bankman-Fried can be released on bail with very restrictive conditions, including house arrest and electronic surveillance.
Any bail arrangement must be approved by a federal judge.
The extradition of Mr. Bankman-Fried to the United States will mark the end of an unusual week of legal maneuvering in the Bahamas.
On Monday, Mr. Bankman-Fried before the Magistrate Court, where he was expected to agree to extradition to the United States. But the hearing descended into chaos as Mr Roberts doubted whether his client would voluntarily proceed with the transfer.
By the end of Monday, however, Mr Roberts had turned his back and announced at a hastily arranged press conference that Mr Bankman-Fried had agreed to extradition after all.
The aftermath of FTX’s demise
The sudden collapse of the crypto exchange has stunned the industry.
The back and forth over the extradition was another twist in a legal drama that began in early November when a run on deposits exposed an $8 billion hole in FTX’s accounts. Federal prosecutors have charged Mr. Bankman-Fried accused of defrauding clients, investors and lenders by diverting billions in client funds to a crypto trading firm called Alameda Research, which was closely associated with FTX.
Since FTX was founded in 2019, prosecutors and US regulators say, Mr Bankman-Fried has orchestrated a large-scale fraud, using client money to fund lavish Bahamas property purchases, investments in other businesses, political contributions and a glamorous marketing campaign. to fund.
Mr. Bankman-Fried resigned as CEO of FTX when the company filed for bankruptcy in November. He was indicted less than a month later by a grand jury in the United States District Court for the Southern District of New York.
Damian Williams, U.S. Attorney for the Southern District of New York, has said the investigation is continuing and additional charges are possible.
Mr Williams was due to hold a press conference on Wednesday afternoon to discuss Mr Bankman-Fried’s case, but it did not take place. The press conference has now been cancelled.
William K. Rashbaum and Benjamin Weiser reporting contributed.
