FTX co-founder Sam Bankman-Fried is escorted by corrections officers to the Justice of the Peace’s Courtroom on December 21, 2022 in Nassau, Bahamas.
Joe Raedle | Getty Photographs
Sam Bankman-Fried is flying Wednesday night time to New York, in keeping with the workplace of the lawyer normal of the Bahamas, the place he’s later anticipated to be arraigned in U.S. federal court docket, concluding a days-long saga.
Bankman-Fried, 30, was indicted in New York federal court docket on Dec. 9 and arrested three days later by Bahamas legislation enforcement on the request of U.S. prosecutors.
His lawyer, Jerone Roberts, studying from an affidavit signed Dec. 20, advised the court docket that Bankman-Fried was consenting to extradition partially resulting from a “want to make the related prospects complete.” Bankman-Fried was “anxious to go away,” Roberts advised the court docket.
It’s unclear how his return would assist plug the $8 billion stability sheet gap that, in keeping with federal complaints, got here on account of dangerous buying and selling and lavish spending by FTX executives.
Bankman-Fried will face arraignment and bail proceedings after he lands. In contrast to different white-collar circumstances, nevertheless, Bankman-Fried faces a specific set of challenges.
“That is clearly not the everyday case,” former federal prosecutor Renato Mariotti advised CNBC. “He’s dealing with many years in jail. And he would not have ties to the group in SDNY like a typical defendant would and in addition has ties to a international jurisdiction. So prosecutors have a shot at getting the decide to order detention until the defendant posts property or a big money bond.”
All through the extradition waiver course of, Bankman-Fried’s Bahamas authorized workforce and U.S. legal professionals have gave the impression to be at loggerheads. His authorized workforce initially said that it could combat extradition makes an attempt, however on Saturday an individual aware of the matter advised CNBC that the crypto billionaire had modified his thoughts and would return to the US.
On Monday morning, Bankman-Fried’s Bahamas counsel mentioned the previous billionaire would not return to the US with out viewing a replica of his indictment, with the lawyer telling a Bahamas Justice of the Peace that he was “shocked” to even see Bankman-Fried in court docket.
Chaos ensued as reporters and attorneys for Bankman-Fried tried to pin down whether or not the previous crypto billionaire could be rendered again to the US for arraignment in federal court docket.
Lastly, on Tuesday, a Bahamas jail official and a supply aware of the matter confirmed that Bankman-Fried had signed extradition paperwork and would seem for his remaining listening to in Nassau on Thursday.
When Bankman-Fried lands in New York, the so-far atypical proceedings ought to tackle a extra acquainted tenor. In a typical federal case, the accused “could be taken to the detention middle for processing earlier than the preliminary detention listening to/arraignment,” former CFTC trial lawyer & Kennyhertz Perry companion Braden Perry advised CNBC.
“However once more, if organized prematurely with the Justice of the Peace accountable for the detention listening to, the court docket might permit a listening to earlier than processing, however that’s unlikely. His attorneys may additionally waive the detention listening to, no less than for now, and request a extra detailed evidentiary listening to to make sure their finest arguments are made with correct proof for detention, because it’s normally a one-time shot at getting out earlier than trial,” Perry continued.
Bankman-Fried stands accused by federal legislation enforcement and monetary regulators of perpetrating what the SEC referred to as one of many largest and most “brazen” frauds in current reminiscence. Alternative CEO John J. Ray described a “full failure of company management” on the firm.
Federal regulators have alleged that Bankman-Fried used that $8 billion price of buyer belongings for extravagant actual property purchases and vainness initiatives, together with stadium naming rights and tens of millions in political donations.
CNBC’s Kate Rooney contributed to this report.
