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The wheels of the American justice system finally spun in earnest last week when Bahamas authorities arrested former FTX CEO Sam Bankman Fried (SBF) over a sealed indictment involving the United States Attorney for the Southern District. New York. While it was initially believed that the SBF would veto his extradition to the US, a few nights in a Bahamas prison were apparently enough to remove any lingering illusions, as the former FTX CEO now appears to be in a hurry to return to the States. United.
A banker tells a Bahamas judge that he wishes to waive his right to extradition proceedings – a court hearing
– First Squawk (FirstSquawk) December 21, 2022
For example, according to the latest reports pouring in, Sam Bankman-Fried has waived his right to formal “extradition proceedings,” with his lawyers going so far as to inform the presiding judge that the SBF “anxious to leave“For now, the procedures postponed. Keep in mind that the SBF’s extradition hearing was originally scheduled for February 2023.
Of course, Sam Bankman Fried’s newfound love for the United States did not come to light until after he was able to witness firsthand the state of the prisons in the Bahamas. Fox Hill, the only known prison complex in the Bahamas, is notorious for its “harsh” conditions, according to a 2021 report from the US State Department. The inmates of Fox Hill Prison suffer from overcrowding, a rodent infestation, and the shame of having to use a bucket instead of proper toilets. While the Bahamas have managed to improve some of the glaring lapses in maintaining sanitary conditions at the facility with the construction of new buildings, overall conditions are still a mixed bag of sorts.
Sam Bankman-Fried has been approved for extradition to the United States, and he will be transferred to US custody to face criminal charges, according to the WSJ.
Unusual whale December 21, 2022
Of course, now that Sam Bankman-Fried is certain to return to the US, he’s going to have to face a real set of legal challenges. In addition to the indictment by the US Attorney for the Southern District of New York, which includes charges of wire fraud, securities fraud and money laundering, the former FTX CEO will also face charges from the US Securities and Exchange Commission. Violation of the securities law.
For starters, cryptocurrency exchange FTX has maintained an undisclosed synergistic relationship with Sam Bankman-Fried’s cryptocurrency trading arm, Silvergate Bank’s cryptocurrency trading arm Alameda Research, allowing Alameda the convenience of borrowing FTX clients’ funds after collateral is deployed in the form of tokens. illiquid tokens, including FTX’s internal FTT token.
However, that party came to an end when Alameda’s huge exposure to the FTT token became public knowledge in early November, prompting Binance to dump its FTT holdings, sending the token’s price crashing. Amidst the scuffle, Alameda Research CEO Carolyn Ellison dumped the trading company’s lowest price on the FTT token, inviting a veritable onslaught of speculative attacks. With Alameda’s ability to repay its obligations weakening because its collateral of illiquid tokens quickly lost their inflated values, and with soaring customer withdrawals sending banks flooding in, FTX had no choice, in the end, to declare bankruptcy.