FTX founder Sam Bankman-Fried will not oppose US extradition in case of alleged fraud, sources say

FTX founder and former CEO Sam Bankman-Fried will no longer oppose extradition to the US, a change just days after he was remanded in custody to a Bahamian prison pending trial. , a person familiar with the matter told CNBC.

The former crypto billionaire will appear in a Bahamian court this Monday to formally waive his extradition rights, paving the way for federal authorities to secure his return to the United States.

Extradition between the Bahamas and the United States is codified by a 1991 treaty. In fact, the process takes months, if not years, to complete because defendants have many opportunities to appeal. Bankman-Fried’s legal team initially said they planned to fight extradition. The change of heart would speed up Bankman-Fried’s federal trial significantly.

The 30-year-old MIT graduate was originally scheduled for his next hearing in February 2023.

A representative for Bankman-Fried declined to comment.

Bankman-Fried was indicted in New York federal court on Monday, on charges of wire fraud, securities fraud, conspiracy to defraud the United States and money laundering. If convicted, he could face the rest of his life in prison. The former FTX CEO also faces concurrent charges from the Securities and Exchange Commission and the Commodity Futures Trading Commission over similar allegations that he worked to defraud billions of dollars. la of FTX customers since 2019, the year the exchange was founded.

At the heart of the Bankman-Fried empire is Alameda Research, a crypto hedge fund that federal regulators allege used FTX client funds to engage in a trade that caused billions of dollars in losses.

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