Sam Bankman-Fried Reverses Decision to Contest US Extradition Request After a Few Nights in Bahamian Jail
It was just a few days ago that Sam Bankman-Fried, the ex-billionaire CEO of defunct cryptocurrency exchange FTX and hedge fund Alameda, decided to contest a US extradition request for his central role in the FTX meltdown that defrauded thousands of investors. However, after spending a few nights in a Bahamian jail, he has reversed his decision and agreed to be extradited back to the United States.
Bankman-Fried is facing charges related to alleged fraud at both FTX and Alameda. The charges include those related to wire fraud on lenders and customers, conspiracy to commit money laundering, conspiracy to commit commodities fraud, and conspiracy to commit securities fraud.
The 30-year-old was arrested last Monday in the Bahamas, and his legal team argued that he should remain at home while awaiting a hearing on his extradition. However, Chief Magistrate JoyAnn Ferguson-Pratt rejected the request and remanded him to Fox Hill Prison.
The US State Department released a report in 2021 describing conditions at Fox Hill prison as "harsh". The report paints a grim picture of overcrowding, rodent infestation, and prisoners using buckets as toilets. Authorities in the Bahamas have since claimed to have improved conditions at the prison.
When Bankman-Fried is extradited to the US for an initial hearing in Manhattan, it is expected that prosecutors will argue that he should not be granted bail because there is a possibility he has hidden wealth he may use to flee the country.
"The missing money gives prosecutors strong arguments that he is a flight risk," said Michael Weinstein, a former federal prosecutor and white-collar defense attorney, in an interview with Reuters. "I expect that if a judge grants pretrial release, they would impose
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