Sam Bankman-Fried (SBF) reconsidered his earlier decision to contest extradition and is expected to appear in court in the Bahamas on the next Monday.
Sam Bankman-Fried (SBF) is the founder & former CEO of the FTX crypto exchange. On 12 November, FTX filed for bankruptcy under chapter 11 in the US bankruptcy court along with its more than 100 affiliated companies like FTX.us, Alameda Research, etc. The main reason behind the downfall of FTX was the misused of the user’s fund for personal benefits like buying properties & donations to politicians.
On 17 Dec, Reuters reported that a person familiar with the SBF & FTX case in the Bahamas said that SBF reconsidered his earlier decision to contest extradition and is expected to appear in court in the Bahamas on 19 Dec to seek a reversal.
If Reuters’ report is 100% right then it will take months or even year for US government agencies to detain SBF officially to proceed with legal actions against him.
On 13 Dec, the Bahamas Police Force arrested SBF following the US charges, including conspiracy to commit wire fraud on customers and lenders, securities fraud, commodities fraud, money laundering, and conspiracy to defraud the United States and violate the campaign finance law.
On the same day, SBF’s bail was denied because of the ‘risk of flight’. The lawyers hired by SBF claimed that there were no scam/fraud records against SBF but that was not easy for SBF to get bail.
According to some law experts, SBF may face jail punishment for up to 115 years but before that case will run for long terms & it will take many years for the FTX creditors to get funds that they lost on the FTX exchange.