On December 21, 2022, in Nassau, Bahamas, FTX co-founder Sam Bankman-Fried was escorted to a magistrate’s court by correctional officers.
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Sam Bankman-Fried flew to New York Wednesday night, where he will later be arraigned in U.S. federal court, and is expected to end the multi-day story, according to the Bahamas Attorney General’s Office. There is
Bankman-Fried, 30, was indicted in New York federal court on December 9 and arrested three days later by Bahamian law enforcement at the request of US prosecutors.
His attorney, Jerone Roberts, said after reading the affidavit signed on Dec. 20 that Bankman-Fried agreed to the extradition in part because he “wanted to complete the clients involved.” Bankman-Fried “was anxious to leave,” Roberts told the court.
It’s unclear how his return will help fill the $8 billion hole in the balance sheet that resulted from high-risk trading and extravagant spending by FTX executives, according to the federal complaint.
Bankman-Fried will face arraignment and bail proceedings after landing. However, unlike other white-collar cases, Bankman-Fried faces a particular set of challenges.
“This is clearly not a typical case,” former federal prosecutor Renato Mariotti told CNBC. “He faces decades in prison. And like a typical defendant, SDNY has no ties to the local community and ties to foreign jurisdictions. property or material cash bonds.”
Throughout the extradition waiver process, Bankman-Fried’s Bahamian legal team and U.S. lawyers appeared at odds. A person familiar with the matter told CNBC that the crypto billionaire will change his mind and return to the United States.
Bankman-Fried’s Bahamian lawyer Monday morning said the former billionaire would not return to the U.S. without seeing a copy of the indictment, the lawyer told a Bahamas magistrate to see Bankman-Fried in court. He even said he was “shocked”. .
Confusion ensued as Bankman-Fried reporters and lawyers tried to find out whether the former crypto billionaire would be returned to the United States for arraignment in federal court.
Finally, on Tuesday, Bahamian prison officials and sources familiar with the matter confirmed Bankman-Fried signed extradition papers and will appear at his final hearing in Nassau on Thursday.
When Bankman-Fried lands in New York, the previously unconventional procedures should take on a friendlier flavor. In a typical federal case, the defendant “is taken to a detention center for processing prior to the initial detention hearing/arraignment,” says former CFTC trial attorney and partner of Kenny Hertz Perry. Braden Perry told CNBC.
“Again, however, it is unlikely that the court would allow the hearing before proceeding if it had been prearranged with the magistrate in charge of the detention hearing, but that is unlikely. , at least for now, you can waive the detention hearings and request more hearings.Since you are usually only released once before trial, the best argument is based on good evidence of detention. A detailed evidence hearing to make sure it takes place,” Perry continued.
Bankman-Fried has been accused by federal law enforcement and financial regulators of carrying out what the SEC called one of the biggest and most “brazen” frauds in recent memory. His successor, John J. Ray, described a “complete failure of corporate control” at the company.
Federal regulators allege Bankman-Fried used $8 billion worth of client assets for extravagant real estate purchases and vanity projects, including stadium naming rights and millions of dollars in political contributions.
CNBC’s Kate Rooney contributed to this report.
