FTX founder Sam Bankman-Fried flies to New York after court chaos

FTX co-founder Sam Bankman-Fried is escorted by correctional officers to the Magistrates Court on December 21, 2022 in Nassau, Bahamas.

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Sam Bankman-Fried will fly Wednesday night to New York, according to the Bahamas attorney general’s office, where he is then expected to be charged in US federal court, ending a sentence. story lasted for many days.

Bankman-Fried, 30 years old, is prosecute in New York federal court on December 9, and arrest three days later by Bahamas law enforcement at the request of US prosecutors.

His attorney, Jerone Roberts, read from an affidavit signed on December 20, telling the court that Bankman-Fried agreed to extradition in part due to his “desire to settle all of his clients related.” Roberts told the court that Bankman-Fried was “very keen to leave”.

It’s unclear how his return will help plug 8 billion dollar balance sheet loss According to the federal complaint, it was the result of risky trading and excessive spending by FTX executives.

Bankman-Fried will face charges and bail proceedings once he lands. Unlike other white-collar cases, however, Bankman-Fried faces a specific set of challenges.

“This is clearly not a typical case,” former federal prosecutor Renato Mariotti told CNBC. “He’s facing decades in prison. And he doesn’t have the connection to the community in SDNY like a typical defendant and also has ties to a foreign jurisdiction. So, prosecutors have the opportunity to ask the judge to order detention unless the defendant posts substantial assets or a cash bond.”

Throughout the extradition waiver process, Bankman-Fried’s Bahamas legal team and U.S. attorneys appeared to be at odds. His legal team initially stated that they would fight the extradition efforts, but on Saturday, a person familiar with the matter told CNBC that the crypto billionaire had has changed his mind and will return to the United States.

On Monday morning, attorneys for Bankman-Fried in the Bahamas said the former billionaire would not return to the United States without seeing a copy of his indictment, with the attorney telling a Bahamas judge he was “shocked.” when he saw Bankman-Fried in court.

Chaos ensued as Bankman-Fried reporters and lawyers tried to determine whether the former crypto billionaire should be brought back to the United States to face charges in federal court.

Finally, on Tuesday, a prison official in the Bahamas and a source familiar with the matter confirmed that Bankman-Fried signed extradition papers and will appear at the final hearing in Nassau on Thursday.

When Bankman-Fried lands in New York, the so far atypical proceedings will take place in a more familiar term. In a typical federal case, the defendant “will be taken to a detention center for pre-trial processing/initial detention order,” former CFTC trial attorney and Kennyhertz partner Perry Braden Perry told CNBC.

“But again, if pre-arranged with the judge in charge of the remand hearing, the court can allow a pre-trial hearing, but that’s unlikely. may waive the remand hearing, at least for now, and request a more detailed evidence hearing to ensure their best argument is presented with evidence appropriate to detention, because it’s often the only chance to get out before trial,” continued Perry.

Bankman-Fried was charged by federal law enforcement and financial regulator about doing what the SEC call one of the biggest and most “brazen” scams in recent times. The replacement CEO John J. Ray described a “complete failure of corporate control” At the company.

Federal regulators have alleged that Bankman-Fried used that $8 billion worth of customer assets to purchase lavish real estate and frivolous projects, including stadium naming rights and millions of political donations.

CNBC’s Kate Rooney contributed to this report.


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