- SBF signed extradition papers yesterday and will be handed to the FBI soon.
- SBF will sign another agreement to waive his right to oppose his extradition.
- From 2019 until its collapse, SBF and other executives of FTX mismanaged users’ funds, as per allegations.
- Funds from the crypto exchange financed Alameda Research’s investment in crypto firms.
- According to an indictment filed by the U.S. Attorney for the Southern District of New York, SBF will face eight charges.
- The former CEO will also face charges from the DOJ, SEC, and CFTC.
Former FTX CEO Sam Bankman-Fried has signed his extradition papers and is set to face criminal charges in the United States.
Before signing the agreement, SBF insisted that he didn’t want to be tried in the US on seeing the indictment against him. However, reports revealed that SBF agreed to his extradition in principle on December 19.
SBF will sign another agreement today to waive his right to oppose extradition. Once he signs the agreement, FBI officials will facilitate his transfer to the United States through a private plane.
Illicit Business Activities by SBF That Led to the Collapse of FTX
Following the arrest of SBF last week Monday, the US Attorney for the Southern District of New York, Damian Williams, said the FTX crisis was the biggest financial fraud in the history of the US.
The attorney explained how SBF and other executives of FTX mismanaged users’ funds from 2019 until the eventual collapse of the cryptocurrency exchange this year.
During a hearing held by the House Financial Services Committee that same week, the new CEO of FTX, John Ray, stated that SBF financed Alameda Research’s investment in crypto firms with funds from the crypto exchange. In addition, Ray illuminated that SBF took a loan from FTX for himself and never returned it.
Charges Before Sam Bankman-Fried
According to an indictment filed by Williams, SBF will face eight charges.
The disgraced ex-billionaire will face charges from the Department of Justice related to wire fraud, conspiracy to commit wire fraud, commodities and securities fraud, and violation of campaign finance law.
Bankman-Fried will face more charges from the Securities and Exchanges Commission and the Commodity Futures Trading Commission.
The two regulators leveled charges before SBF for breaching commodity laws and scamming investors. As revealed, investors lost about $9 billion to the collapse of FTX.
On the Flipside
- At his hearing at the Bahamas court on Monday, SBF was “begging” his lawyer to get him back to the US, according to crypto influencer Ben Armstrong.
- The Bahamian prison where SBF was imprisoned following his arrest was termed “harsh” by the State Department.
- Based on investigations, it was determined that the facility was overcrowded, the prisoners lacked adequate nutrition and sanitation, and they suffered from inadequate medical care.
Why You Should Care
The recent development may relieve those eager to see the FTX founder tried by US authorities. There were earlier reports that he would be handed over to US authorities last Monday, though some unknown reasons prevented this.
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