Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

FTX’s Bankman-Fried appears at Bahamas court; expected to waive extradition

FTX’s Bankman-Fried appears at Bahamas court; expected to waive extradition

Sam Bankman-Fried, founder of now-bankrupt crypto exchange FTX, appeared at court in the Bahamas on Monday although his lawyer said the reason for the hearing was unclear, after a source told Reuters the former billionaire was expected to agree to be extradited to the US.

Bankman-Fried initially had said he would fight extradition after his arrest a week ago in the Bahamas, where he lives and FTX is based. He was denied bail and remanded to the Caribbean nation’s Fox Hill prison.

Reuters reported first on Saturday that Bankman-Fried would return to court to reverse his decision, citing a source. Bankman-Fried exited a black van reading ‘Corrections’ outside the courthouse in Nassau on Monday, dressed in a dark blue suit carrying a manila folder containing papers.

Bankman-Fried’s defense lawyer however told Magistrate Shaka Serville that he does not know why Bankman-Fried was brought to court this morning. The court broke for recess so Bankman-Fried’s lawyers could confer with him.

The 30-year-old crypto mogul rode a boom in the value of Bitcoin and other digital assets to become a billionaire several times over and an influential political donor in the United States, until FTX collapsed in early November after a wave of withdrawals. The exchange declared bankruptcy on Nov. 11.

Federal prosecutors in Manhattan said Bankman-Fried stole billions of dollars in FTX customer deposits to plug losses at his crypto hedge fund, Alameda Research. They accuse Bankman-Fried of misleading lenders and investors, conspiring to launder money, and violating US campaign finance laws.

Bankman-Fried has acknowledged risk management failures at FTX but said he does not believe he has criminal liability.


Long road to eventual trial


Upon being extradited to the US, Bankman-Fried would be required to appear before a judge in Manhattan within two days, though the hearing would likely take place quickly. He would be asked to enter a plea, and the judge would make a determination on bail.

Prosecutors are expected to argue that Bankman-Fried is a flight risk and should remain in custody because of the large sums of money involved in the case and the unclear location of those funds.

Bankman-Fried would likely be held at the Metropolitan Detention Center in Brooklyn, though due to overcrowding there some federal defendants are being held at jails just outside New York City, said Zachary Margulis-Ohnuma, a New York defense lawyer at ZMO Law PLLC who is not involved in the case.

It was not immediately clear what prompted Bankman-Fried to change his mind on extradition. In a 2021 report, the US State Department described “harsh” conditions at the Fox Hill correctional facility where Bankman-Fried was being held, with overcrowding, rodent infestation and prisoners using buckets as toilets. Bahamas authorities say conditions have since improved.

Bankman-Fried had been remanded to the prison on Tuesday after Chief Magistrate JoyAnn Ferguson-Pratt rejected his request to remain at home while awaiting a hearing on his extradition.

In the US it is highly unusual for judges to deny bail to defendants accused of non-violent financial crimes, though they typically demand steep dollar amounts and impose onerous monitoring conditions.

High-profile defendants including Ponzi schemer Bernard Madoff, Theranos founder Elizabeth Holmes, and Enron executives Jeffrey Skilling and Kenneth Lay were all granted bail before trial.

Damian Williams, the top federal prosecutor in Manhattan, last week described the collapse of FTX as one of the “biggest financial frauds in American history.” He has said the office’s investigation is ongoing, and called on people with knowledge of wrongdoing at FTX or Alameda to cooperate.

Any trial of Bankman-Fried is likely more than a year away, legal experts told Reuters.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Hungary's "Puppet" President to Be Ousted, Orbán Fumes: "Democracy Is Dead"
Forget Tinder: The Surprising Platform Where People Find Love
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
×