Here’s Why FTX’s Sam Bankman-Fried will not challenge US Extradition

Sahana Kiran
Source – CNBC

The collapse of the FTX empire took place in November. Following this, a series of events with respect to the exchange and Sam Bankman-Fried followed suit. While the Bahamas managed to arrest the former CEO of the firm, the U.S. was seeking extradition. Initially, SBF’s legal team revealed that he would fight the extradition. However, over the weekend, it was brought to light that he would be surrendering for extradition.

Multiple sources revealed that SBF would be appearing before the court in the Bahamas on Monday. He would do so to reverse his initial decision of contesting extradition to the United States. It should be noted that SBF faces charges from the Department of Justice, Securities and Exchange Commission, and Commodity Futures Trading Commission. The former FTX chief was indicted on eight counts including securities fraud and money laundering.

SBF is currently at the Bahamas’ Fox Hill prison. It should be noted that he was refused bail twice. His extradition hearing is scheduled on February 8.

The community speculates that SBF’s poor conditions in prison have forced his team to drop his fight against extradition. Just last year, a U.S. State Department report suggested that the Fox Hill Prison was rat-infested, harsh as well as overcrowded.

Here’s what might happen to FTX’s former chief

Right after his extradition to the US falls through, SBF would have to appear before the court. He would have to deal with wire fraud, money laundering, and similar such charges. After he arrives in the U.S. the FTX chief Bankman-Fried would most likely be detained at the Metropolitan Detention Center in Brooklyn.

However, defense attorney Zachary Margulis-Ohnuma noted that some federal prisoners are now being detained at jails close to New York City as a result of congestion at the facility.

Bankman-Fried would have to deal with a court hearing in the Manhattan court. This hearing is expected to occur within 48 hours of Bankman-entrance Fried’s in the country.