Bankman-Fried Not Expected to Fight US Extradition After All

Sam Bankman-Fried initially declined to waive his right to dispute US extradition, but now the disgraced FTX founder is expected to consent

article-image

Sam Bankman-Fried set to agree to US extradition

share

Former crypto billionaire Sam Bankman-Fried is expected to appear in Bahamian court on Monday and agree to US extradition.

Bankman-Fried was arrested in The Bahamas last week at the US government’s request, leaving his luxury penthouse for a prison cell.

The Bahamas has an extradition treaty with the US but the process isn’t clear-cut and can take weeks. 30-year-old Bankman-Fried is at the whim of Bahamian authorities as they “operate on their own timeline,” a source familiar with the matter told Blockworks.

The former FTX CEO is charged with eight criminal counts including conspiracy to commit wire fraud and securities fraud, money laundering and conspiracy to avoid campaign finance regulations. Prosecutors claim he was engaged in criminal activity since 2019 and didn’t stop until Nov. 2022.  

If convicted of all eight charges, Bankman-Fried could be in prison for up to 115 years, per the Department of Justice’s indictment

Following his arrival in the US, he is expected to attend federal trial court in the Southern District of New York, the source said. The development was first reported by Reuters. Bankman-Fried initially declined to waive his right to fight his extradition upon his arrest.

Defense lawyer Zachary Margulis-Ohnuma told Reuters the defamed crypto mogul will either be confined at the Metropolitan Detention Center in Brooklyn or be taken to another facility outside the city. Blockworks reached out to Margulis-Ohnuma for comment.

When Bankman-Fried appears in US court, he will be expected to enter a plea, after which a judge would reach a bail determination. He was denied bail in The Bahamas last week and was pictured leaving a court in handcuffs. 

Bankman-Fried lawyers up ahead of extradition hearing

Bankman-Fried’s arrest was the first solid move by regulators to hold someone responsible for FTX’s multibillion-dollar implosion. He has hired Mark Cohen as his attorney, the same lawyer who represented Ghislaine Maxwell in her sex trafficking trial.

FTX’s surprise implosion in November coincided with allegations of the crypto exchange directing user funds to sister trading firm Alameda Research.

New CEO John J. Ray III has said FTX went on a “spending binge” between 2019 and 2022 during which $5 billion was spent on a “myriad of businesses and investments” which may have been worth only a fraction of what was paid.

During one of his several recent media appearances, Bankman-Fried didn’t explicitly rule out the possibility of a comeback attempt. He said he’d “give anything to be able to [pay users back]” and that he would try if he could — although that was before his arrest.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png

Research

With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.

article-image

Kraken and CertiK brought their beef to social media after Kraken said researchers exploited $3 million through a bug

article-image

NVIDIA’s historic run is only deepening the divide between mega-cap tech stocks and the rest of the market.

article-image

EIP-7702 was quickly adopted for the next Ethereum upgrade, but developers haven’t quite locked it down

article-image

Marathon Digital’s latest heating project in Finland part of broader vision to “drive the advancement of the digital asset compute industry,” CEO says