SBF to Re-think Decision to Contest Extradition to U.S.

To Get Extradited or Not

Sam Bankman-Fried, Former CEO of bankrupt FTX, is expected to arrive at the hearing in Bahamas court on December 19, while reconsidering his previous choice to challenge his extradition to the United States.

On December 12, 2022, SBF was arrested by the Royal Bahamas Police Force at the request of the U.S. government. As reported by CNN, he had been indicted on eight criminal charges, according to the U.S. Attorney of the Southern District of New York (SDNY). As per congressional statutory maximum sentencing guidelines, he may get jailed for 115 years if convicted. Chief Magistrate of the Bahamas, Joyann Ferguson-Pratt, rejected his bail.

According to The Washington Post, the 30-year-old is accused by the Justice Department for violating campaign finance laws, conspiracy, fraud, money laundering and more. However, the U.S. Securities and Exchange Commission (SEC) had claimed that he defrauded FTX investors. Whereas, Commodity Future Trading Commission (CFTC) had also listed fraud allegations against him.

On December 13, at a conference held by the U.S. SDNY at 2:00 p.m., Michael Driscoll, FBI assistant director said that “Bankman-Fried knowingly defrauded customers of FTX through the misappropriation of customer deposits to pay expenses and debts of a different company,” he also added “abusing the trust placed not only in his company but in himself as the lead of that company.”

SBF’s Life Dim

As per The Atlantic, SBF will spend his holidays in Fox Hill Prison which is known for all the wrong reasons — overcrowded, poor nutrition, insufficient medication and poor sanitation. Human rights reports from the U.S. State Department 2021, stated that conditions are “harsh”, with degrading treatment and alleged cases of physical abuse by prison officers. Furthermore, he has to stay in the Bahamas’ only prison until February 2023 awaiting an extradition hearing.

The Wall Street Journal reported that SBF has used “commingled FTX customer funds” for “large political donations,” making him the 6th largest donor in the U.S. midterm elections, with overall $40 million in political donations. The other executives from FTX, Ryan Salame and Nishad Singh donated $20 million and $8 million respectively.

As per The Guardian, SBF has been on an apology tour spanning several meetings and interviews. The former CEO stated that he had no knowledge of potentially fraudulent activities at FTX, including diversion of billions of customers’ funds as collateral for loans or any other purposes. He also distanced himself from Caroline Ellison, former CEO of Alameda Research, which he founded.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing