Sam Bankman-Fried (SBF), the founder and former CEO of the bankrupt cryptocurrency exchange, FTX has agreed to be extradited.
According to the reports, the Bahamas police had arrested the former CEO of the troubled exchange at the request of the US law enforcement authorities.
A request was launched by the law enforcement authorities of the United States to arrest SBF. Furthermore, the authorities requested that he must be sent back to the US for extradition.
SBF Agreed to Extradition
The decision to be extradited was completely up to SBF whether he would want to stay in the Bahamas and face justice or be sent to the US.
It was during a Bahamian court hearing on Tuesday when the question was posted at SBF by the court judge. SBF agreed to be extradited so he will be sent to the US for further legal proceedings.
The information has been confirmed by one of the officials from the Bahamian Court.
Paperwork is with the Court
The officials have confirmed that the paperwork for the extradition of SBF has already been submitted to the court.
The court is well aware of the situation and they have given their approval for SBF to be flown to the United States.
Doan Cleare, the Bahamas Department of Correctional Services’ acting commissioner, provided information on the matter.
Cleare is the one who has been in contact with the law enforcement authorities in the United States dealing with the entire matter.
He confirmed that SBF’s further trials will be carried out in the United States.
Allegations over Sam Bankman-Fried
The allegations imposed over Sam Bankman-Fried by the US law enforcement authorities are over the misappropriating of deposits that were made at the FTX exchange.
According to the reports, the deposits were worth several billion and they belonged to the investors and users on the exchange.
Unfortunately, the situation turned ugly pertaining to the funds of the exchange as it faced a major collapse in November.
SBF was arrested on December 12
A month after the crash of the FTX exchange, the Bahamas authorities arrested Sam Bankman-Fried. The authorities arrested him on December 12 from the Bahamas.
The arrest was a result of multiple indictments charged by the US Federal Authorities. These indictments included campaign finance offenses, money laundering, and fraud.
After the arrest of SBF, the Bahamas authorities held a press conference where they laid out the nature of the arrest. They also unsealed the list of the charges that were imposed against SBF.
Allegations by the Prosecutors
According to the prosecutors, SBF is involved in the financing of multiple campaigns in the United States. It has been confirmed that he had made millions of dollars worth of contributions to the campaigns.
It has been claimed that these were illegal campaigns that financed both the Republican and the Democratic candidates.
He also ran illegal campaigns to generate millions of dollars for the campaign committees.
The Justice Department has also issued its own statement against the former FTX CEO. They have alleged him of running fraud against the customers. The authority has claimed that he had been doing it since 2019.
Statement by Gretchen Lowe
The Enforcement Division’s acting director that is part of the CFTC also issued a statement pertaining to the FTX crash
According to the information published by Lowe, the customers of the FTX exchange have been deprived of over $8 billion worth of funds.
From Rise to fall
There was a time when the FTX exchange had an overall valuation of $32 billion. It was among the fastest-growing cryptocurrency exchanges and was second on the list in terms of generating high trading volumes.
As of today, the exchange is bankrupt and the investors are asking for their funds to be returned but so far, there is no hope for them.