FTX co-founder Sam Bankman-Fried is escorted by corrections officers to the Justice of the Peace’s Court docket on December 21, 2022 in Nassau, Bahamas.
Joe Raedle | Getty Pictures
Sam Bankman-Fried is flying Wednesday night time to New York, in response to the workplace of the lawyer common of the Bahamas, the place he’s later anticipated to be arraigned in U.S. federal court docket, concluding a days-long saga.
Bankman-Fried, 30, was indicted in New York federal court docket on Dec. 9 and arrested three days later by Bahamas regulation enforcement on the request of U.S. prosecutors.
His lawyer, Jerone Roberts, studying from an affidavit signed Dec. 20, instructed the court docket that Bankman-Fried was consenting to extradition partly resulting from a “want to make the related clients entire.” Bankman-Fried was “anxious to depart,” Roberts instructed the court docket.
It’s unclear how his return would assist plug the $8 billion steadiness sheet gap that, in response to federal complaints, got here because of dangerous buying and selling and lavish spending by FTX executives.
Bankman-Fried will face arraignment and bail proceedings after he lands. Not like different white-collar instances, nevertheless, Bankman-Fried faces a selected set of challenges.
“That is clearly not the everyday case,” former federal prosecutor Renato Mariotti instructed CNBC. “He’s dealing with many years in jail. And he does not have ties to the group in SDNY like a typical defendant would and likewise has ties to a international jurisdiction. So prosecutors have a shot at getting the decide to order detention except the defendant posts property or a major money bond.”
All through the extradition waiver course of, Bankman-Fried’s Bahamas authorized crew and U.S. legal professionals have gave the impression to be at loggerheads. His authorized crew initially acknowledged that it will struggle extradition makes an attempt, however on Saturday an individual accustomed to the matter instructed CNBC that the crypto billionaire had modified his thoughts and would return to america.
On Monday morning, Bankman-Fried’s Bahamas counsel stated the previous billionaire would not return to america with out viewing a replica of his indictment, with the lawyer telling a Bahamas Justice of the Peace that he was “shocked” to even see Bankman-Fried in court docket.
Chaos ensued as reporters and attorneys for Bankman-Fried tried to pin down whether or not the previous crypto billionaire could be rendered again to america for arraignment in federal court docket.
Lastly, on Tuesday, a Bahamas jail official and a supply accustomed to the matter confirmed that Bankman-Fried had signed extradition paperwork and would seem for his last listening to in Nassau on Thursday.
When Bankman-Fried lands in New York, the so-far atypical proceedings ought to tackle a extra acquainted tenor. In a typical federal case, the accused “could be taken to the detention middle for processing earlier than the preliminary detention listening to/arraignment,” former CFTC trial lawyer & Kennyhertz Perry companion Braden Perry instructed CNBC.
“However once more, if organized upfront with the Justice of the Peace in command of the detention listening to, the court docket might enable a listening to earlier than processing, however that’s unlikely. His attorneys might additionally waive the detention listening to, no less than for now, and request a extra detailed evidentiary listening to to make sure their greatest arguments are made with correct proof for detention, because it’s normally a one-time shot at getting out earlier than trial,” Perry continued.
Bankman-Fried stands accused by federal regulation enforcement and monetary regulators of perpetrating what the SEC known as one of many largest and most “brazen” frauds in latest reminiscence. Substitute CEO John J. Ray described a “full failure of company management” on the firm.
Federal regulators have alleged that Bankman-Fried used that $8 billion value of buyer property for extravagant actual property purchases and self-importance initiatives, together with stadium naming rights and thousands and thousands in political donations.
CNBC’s Kate Rooney contributed to this report.