Former FTX CEO and founder Sam Bankman-Fried will appear in Bahamas court on Monday where he’s expected to waive his extradition rights, according to a source with direct knowledge of the situation.
The move is a stunning reversal of course for Bankman-Fried who was arrested in the Bahamas Dec. 12 and initially resisted extradition.
Bankman-Fried, 30, once the most prominent name in crypto, has since seen his empire fall into disgrace over the past few weeks.
Last week, he was indicted in New York federal court on eight counts spanning wire fraud, conspiracy to commit wire fraud, and violating campaign finance laws. Prosecutors alleged he “orchestrated yearslong fraud” on investors and customers.
The U.S. Securities and Exchange Commission further charged him with defrauding investors and enriching his private crypto hedge fund Alameda.
At a congressional hearing on FTX’s collapse and missteps last week, the company’s new CEO, John J. Ray III, lashed out at FTX’s leadership under Bankman-Fried.
“The FTX Group’s collapse appears to stem from absolute concentration of control in the hands of a small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company entrusted with other people’s money or assets,” Ray told lawmakers.
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