SBF Ready To Face The Music After Signing Extradition Papers

Updated: 21 December 2022

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The collapse of the FTX crypto exchange — a once popular crypto platform, now less than a shadow of its former self — has sent major shockwaves throughout the crypto industry. The Bahamas-based platform filed for bankruptcy on November 11th, 2022, which was followed by several criminal investigations, as well as the arrest of its officials, including now-former CEO, Sam Bankman-Fried.

Bankman-Fried, who also founded FTX, recently signed his extradition papers, according to yesterday’s reports. The report even obtained a statement by the Fox Hill Prison’s Acting Commissioner of Corrections, Doan Cleare. The statement says that Bankman-Fried has agreed to be extradited to the US, and he signed the documents at noon on the same day.

SBF agrees to be extradited later today

Initial reports suggested that SBF intended to fight against the extradition and that he had a legal team that might be able to make a case. However, the new reports of him signing the papers willingly indicate that Bankman-Fried changed his original stance and now wishes to cooperate.

Following his arrest, he was held in Fox Hill Prison’s medical unit, where he was placed after his arrest on December 12th. Since then, he has attended a number of hearings in the Bahamas, and the next one is scheduled to take place today, December 21st, at 11 am EST. As for when he will leave the Bahamas’ only prison and travel back to the US — it was revealed that this will happen later today, Wednesday, December 21st, after his final hearing in the Bahamas.

What is known, however, is that Bankman-Fried’s return to the US will have him face eight criminal charges. The charges so far include money laundering and fraud, and it is expected that he will request bail immediately upon arrival. However, if the US denies the bail request, SBF is likely to be held in New York’s Metropolitan Detention Center in Brooklyn.

The future of FTX

It has been over five weeks since FTX’s collapse, and for the moment, the company is still locked in its bankruptcy proceedings. The exchange has received new management which replaced SBF and the rest of the exchange’s old officials. The replacement management revealed recently that it managed to locate over $1 billion in assets, with $720 million of the total amount being in cash.

Currently, the plan is to move the funds from the FTX-owned account to institutions that are authorized to act as depositories, which is where they will likely remain until the bankruptcy proceedings are completed.

Interestingly, Bankman-Fried did acknowledge the exchange’s failures in regard to risk management, but he continues to claim that he has no criminal liability. In other words, he suggests that the incompetence to handle the difficult market conditions was what led to the exchange’s collapse, instead of any criminal intention or alleged illicit activities.

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