Sam Bankman-Fried will now surrender himself for extradition prior to Bahamian court Monday: Source

FTX back in bankruptcy court as Sam Bankman-Fried tries again for bail in the Bahamas

Revealed: The Secrets our Clients Used to Earn $3 Billion

FTX creator Sam Bankman-Fried (second L) is led away handcuffed by officers of the Royal Bahamas Police Force in Nassau, Bahamas on December 13,2022

Mario Duncanson|AFP|Getty Images

FTX creator and previous CEO Sam Bankman-Fried will no longer contest extradition to the U.S., an about-face simply days after he was remanded to Bahamian prison pending a hearing, an individual acquainted with the matter informed CNBC.

The previous crypto billionaire will appear in Bahamian court this Monday to officially waive his extradition rights, leading the way for federal authorities to protect his go back to the U.S.

Extradition in between the Bahamas and the U.S. is codified by a 1991 treaty. In practice, the procedure takes months, if not years, to finish due to the fact that the implicated have many possibilities to appeal. Bankman-Fried’s legal group had at first stated that it prepared to combat extradition. The change of mind would go up the timeline for Bankman-Fried’s federal trial considerably.

The 30- year-old MIT graduate was initially set up for his next hearing in February 2023.

An agent for Bankman-Fried decreased to comment.

Bankman-Fried was arraigned in New York federal court on Monday, on charges of wire scams, securities scams, conspiracy to defraud the United States, and cash laundering. If sentenced, he might deal with the rest of his life in jail. The previous FTX CEO likewise deals with concurrent charges from the Securities and Exchange Commission and the Commodity Futures Trading Commission over comparable accusations that he worked to defraud FTX clients of billions of dollars given that 2019, the year the exchange was established.

At the heart of Bankman-Fried’s empire was Alameda Research, a crypto hedge fund that federal regulators declare utilized FTX client cash to take part in trading which lost billions of dollars.

FTX’s collapse was sped up when reporting by CoinDesk exposed an extremely focused position in self-issued FTT coins, which Bankman-Fried’s hedge fund Alameda Research utilized as security for billions in crypto loans. Binance, a competing exchange, revealed it would offer its stake in FTT, stimulating a huge withdrawal in funds. The business froze properties and stated insolvency days later on. Charges from the SEC and CFTC showed that FTX had actually combined client funds with Bankman-Fried’s crypto hedge fund, Alameda Research, which billions in client deposits had actually been lost along the method.