The founder of the FTX cryptocurrency platform, Sam Bankman-Fried, could be extradited to the United States this Wednesday, after resigning before a Bahamas Court to a formal hearing that would have lengthened the process.
The young man waived his right to a formal extradition hearing before Judge Shaka Serville, ending speculation and a potentially protracted legal battle.
Bankman-Fried decided to accept extradition in part because of his “desire to compensate affected clients,” according to the affidavit.
After confirming that the FTX founder was not being forced, threatened or coerced, the magistrate released him into custody pending extradition.
In this context, Jerone Roberts, a lawyer for Bankman-Fried, testified in court that his client was “eager to get out” of the Bahamas.
Bankman-Fried’s legal team reported Monday that his client has decided to waive her right to challenge extradition, which means he will stand trial in the United States, where he is charged with eight counts by the US Attorney’s Office for the Southern District of NY.
Bankman-Fried has been incarcerated in the Bahamas Department of Correctional Services for more than a week, after being denied bail due to flight risk.
The FTX founder is charged with eight counts, including wire fraud, money laundering and violation of political campaign finance laws by the US Attorney’s Office for the Southern District of New York.
Alameda Research was the investment firm created by Bankman-Fried himself, in which he allegedly used billions of dollars from FTX clients without his knowledge to carry out risky trades.
But the charges also have a political dimension: one accuses him of “committing crimes against the United States by engaging in violations of federal laws relating to the making, receiving, and reporting of contributions, donations, or expenditures” incurred in federal elections.
In addition, Bankman-Fried also faces another lawsuit, in this case from the Securities and Exchange Commission of the United States (SEC), which accuses him of orchestrating fraud against investors.
FTX filed for bankruptcy on November 11 and at the end of the same month, the company’s new managers appeared for the first time before the bankruptcy court of the state of Delaware (USA) to begin the restructuring process.
The platform, which was once valued at $32 billion, could have more than a million creditors around the world. So far, the company has admitted that it owes more than $3 billion to its top 50 creditors.