Reuters: FTX founder ends fight against extradition to US

Sam Bankman-Fried, the founder of bankrupt crypto exchange FTX, who is currently in jail in the Bahamas, wants to end his fight against extradition to the United States. Reuters news agency reported this information from inside. US authorities accuse Bankman-Fried of multiple criminal offenses and want to prosecute him in the US.

FTX went bankrupt because the company didn’t have enough cash to repay users’ claims. FTX’s client assets were transferred to the investment fund Alameda, which is owned by Bankman-Fried. There it got involved in investments.

U.S. authorities suspect Bankman-Fried of a total of eight criminal offenses. FTX for Alameda used customer funds improperly and misled lenders and customers about the financial health of its crypto companies. He allegedly laundered the proceeds and violated US campaign finance laws.

An extradition hearing for Bankman-Fried to the United States is scheduled for February 8. During Tuesday’s hearing, his lawyer said he would fight the deportation plans.

The session was the first since Bankman-Fried’s arrest a day earlier in the Bahamas. During the hearing, Bankman-Fried also suggested that her attorney would like to post $250,000 in cash bail. Bankmann-Fried will be allowed to leave his cell and wear an ankle bracelet, according to his advice. However, the judge disagreed with this due to the high flight risk.