Former FTX CEO Arrives in the United States to Face Multiple Charges 

Jimmy Aki
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Sam Bankman-Fried, the founder of the now-defunct FTX cryptocurrency exchange, has arrived in the United States from The Bahamas to face trial for his role in the exchange’s implosion.

Extradition Waiver Granted

According to ABC News, Bankman-Fried landed at Westchester County Airport in New York late Wednesday after a successful extradition transaction with the Bahamas government. The former billionaire had been in Bahamian custody for almost two weeks and is reported to have agreed to return home, where he will now begin legal proceedings. 

The Office of the Attorney General of The Bahamas has also announced the extradition, confirming that the exchange founder had left the island nation and would be heading back to U.S. shores. 

The Attorney General’s statement confirmed that the U.S. government had formally requested Bankman-Fried’s extradition after Royal Bahamas Police arrested him on December 12 and that the former billionaire also failed to contest the transaction. In line with the country’s Extradition Act, Bankman-Fried was sent home. 

The move was surprising, especially considering that Bankman-Fried had earlier contested extradition to the United States. By waiving his previous contest, the former billionaire fast-tracked an extradition process that would have initially taken years to complete. 

Doan Cleare, an acting corrections officer in The Bahamas, told industry news sources that the waiver was likely due to Bankman-Fried’s desire not to stay at Fox Hill prison. The correctional facility is the only prison in The Bahamas and has long been the focus of human rights investigations following allegations of overcrowding and deplorable living conditions for inmates. 

Recent reports suggested that Bankman-Fried’s family had requested specific living conditions for him in prison, including a diet of vegan food. With slim chances of these requests being granted, it appears that the former billionaire is now headed back home, where he can better negotiate the terms of his sentencing.

Time to Face the Music 

The extradition brings what is sure to be another twist to the seemingly never-ending FTX saga. Bankman-Fried and several top brasses from FTX and its sister company Alameda Research had been on the run since both companies went bankrupt early last month. However, some eventually settled in The Bahamas, where FTX’s company structure was headquartered. 

Now that he is back in the United States, Bankman-Fried will face multiple charges. The U.S. Securities and Exchange Commission (SEC) has charged him with violating the anti-fraud provisions of the Securities Exchange Acts of 1933 and 1934, while the U.S. Attorney’s Office for the Southern District of New York has also hit him with multiple counts of securities fraud, wire fraud, money laundering, and securities fraud conspiracy.  Considering the extent of these crimes and the amount of money in question, Bankman-Fried could easily be looking at life behind bars if found guilty. 

Interestingly, Bankman-Fried isn’t the only member of the FTX top brass to face the music. While the former billionaire was on his way home, the SEC and the Commodities Futures Trading Commission (CFTC) unveiled new charges against Caroline Ellison, the CEO of Alameda, and FTX co-founder Gary Wang. 

Both have been charged for their roles in the “multiyear scheme to defraud equity investors in FTX.” The SEC also confirmed that it is still investigating possible additional securities law violations. 

Ellison and Wang already pled guilty to federal fraud charges leveled against them by the Justice Department and are now cooperating with the government in its investigation of Bankman-Fried. The terms of their deals have yet to be released, but the focus is on the head of the organization, who will appear before a New York judge soon.  

 

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.