Daily News

FTX Founder Bankman-Fried Returns To Bahamas Jail After Court Hearing Cut Short

In an unexpected decision following reports over the weekend that FTX founder Sam Bankman-Fried will turn himself into U.S. custody, Bahamian magistrate Shaka Serville has ordered that Bankman-Fried be sent back to a Bahamian correctional facility.

The decision came after Bankman-Fried’s attorney reportedly requested the adjournment, saying he hadn't been properly consulted about the proceedings. The former crypto tycoon reportedly demanded to view a copy of his federal indictment while in court on Monday, according to CNBC.

Last week, Bankman-Fried's legal counsel hinted that they might contest his extradition. Then, over the weekend that he reportedly planned to waive his extradition fight, and return to the U.S. to face criminal charges.

Just after 10 a.m. ET, the FTX founder appeared in the Bahamian court in a convoy of police cars while being well guarded.

During court proceedings, his defense lawyer expressed his surprise that Bankman-Fried was present. "I did not request him to be here this morning," the attorney said.

Franklyn Williams KC, the Bahamian prosecutor, said that he "understood that [Bankman-Fried] intended to waive extradition," according to an NBC News producer in the courtroom.

SBF Accused Of Stealing Billions Of Dollars

Bankman-Fried was accused by federal prosecutors in Manhattan of stealing billions of dollars in FTX customer deposits in order to cover losses at his cryptocurrency hedge fund, Alameda Research. On Nov. 11, the crypto exchange filed for bankruptcy.

He allegedly conspired to launder money, misleading lenders and investors, and breaking United States campaign financing laws in the process.

Bankman-Fried would be compelled to appear before a judge in Manhattan within two days after being extradited to the United States, though the hearing would probably happen more quickly. Once in a U.S. courtroom, he would be required to enter a plea, and the judge would decide on bail.

Due to the significant sums of money at stake in the case and the ambiguous location of the funds, prosecutors anticipate making the case that Bankman-Fried is a flight risk and should be kept in custody. The fall of FTX was dubbed one of the "biggest financial frauds in American history" by Damian Williams, the senior federal prosecutor in Manhattan, last week.

Also read: FTX Founder Sam Bankman-Fried May Not Contest His Extradition To US: Latest Developments

The Fox Hill Correctional Facility, where Bankman-Fried is being detained, was described as having "harsh" circumstances by the U.S. State Department in a 2021 report, including overcrowding, rodent infestation, and convicts using buckets as toilets. Although, according to Bahamian authorities, the situation has subsequently gotten better.

Bankman-Fried has been in jail since Tuesday, Dec. 13, when Chief Magistrate JoyAnn Ferguson-Pratt denied Bankman-Fried's request to stay at home while awaiting a hearing on his extradition.

Next: Crypto Should Be Outlawed… Maybe, Senator Says: FTX Just One Problem Out Of Many

What's your reaction?

In Love
Not Sure

Leave a reply

Your email address will not be published. Required fields are marked *

Next Article:

0 %