FTX co-founder Sam Bankman-Fried handed over to US authorities, en route to New York
FTX co-founder Sam Bankman-Fried handed over to US authorities, en route to New York
Fallen crypto mogul Sam Bankman-Fried left the Bahamas Wednesday night after he was transferred to US custody.
Bankman-Fried boarded a flight to New York, where he will face fraud and other criminal charges related to the rapid implosion of his cryptocurrency exchange company FTX, the Wall Street Journal reported.
He will likely appear in front of a US judge on Thursday.
The alleged fraudster took off from Nassau’s Odyssey Airport and video from Bahamian media shows he was escorted to a private runway by a long police motorcade shortly before 7 p.m.
Hours earlier, the 30-year-old appeared in the Magistrate Court building in Nassau, where he confirmed to the judge that he is waiving his right to a lengthy extradition hearing.
He said he consented to extradition because he wants “to make the relevant customers whole,” according to court papers — reversing his initial decision to fight the process.
The disgraced crypto king was arrested last week by law enforcement in the Bahamas where he had been living at the time after he was indicted in the Southern District of New York.
If he is not released on bail in New York, he is likely to be locked up in Brooklyn’s notorious Metropolitan Detention Center as he awaits trial.
Prosecutors allege Bankman-Fried hid FTX’s financial problems from the public and defrauded investors out of over $1.8 billion.
The Securities and Exchange Commission accused Bankman-Fried of illegally using investors’ money to fund his Alameda Research hedge fund and buy real estate on behalf of himself and his family. He’s also charged with wire fraud, money laundering and campaign finance charges.
US Attorney Damian Williams blasted Bankman-Fried’s alleged crimes as among “the biggest financial frauds in American history.”
If convicted, he faces a maximum of 115 years in prison..
FTX had been valued at up to $32 million before its sudden collapse on Nov. 11 when Bankman-Fried stepped down as CEO and the firm said it was bankrupt.
The ex-CEO has admitted to multiple missteps, but insisted he did not commit any crimes.
Since his Dec. 12 arrest, Bankman-Fried was locked up in the reportedly rat-infested Fox Hill Prison in the Bahamas, which was chastised by the US State Department last year for being overcrowded and lacking plumbing.
Bankman-Fried, however, reportedly enjoyed special perks such as air-conditioning and cable TV during his short stint at the prison.
