Sam Bankman-Fried will now surrender himself for extradition before Bahamian court Monday: Source

FTX founder Sam Bankman-Fried (2nd L) is led away handcuffed by officers of the Royal Bahamas Police Force in Nassau, Bahamas on December 13, 2022. 

A person familiar with the matter told CNBC that FTX founder and former CEO Sam Bankman- Fried will no longer contest his deportation to the U.S.

The former billionaire will waive his rights to be extradited to the U.S. when he appears in a Bahamas court on Monday.

The 1991 treaty codifies extradition between the two countries. The process takes a long time because the accused have many chances to appeal. The legal team for Bankman-Fried initially said it would fight the decision to extradite him. The federal trial for Bankman- Fried would be moved up significantly if the change of heart was true.

The next hearing for the 30-year-old MIT graduate was supposed to be in February of 2020.

A representative for Bankman-Fried wouldn't say anything.

Bankman- Fried was indicted in New York federal court on Monday on charges of wire fraud, securities fraud, conspiracy to defraud the United States, and money laundered. He could face the rest of his life behind bars. The former FTX CEO faces charges from the Securities and Exchange Commission and the Commodity Futures Trading Commission over allegations that he worked to defraud FTX customers of billions of dollars.

Federal regulators have accused Bankman-Fried of using FTX customer money to engage in trading which resulted in billions of dollars in losses.

The collapse of FTX was caused by the revelation of Bankman-Fried's hedge fund Alameda Research's use of self-issued FTT coins as security for billions of dollars in loans in the space of a single day. A huge withdrawal of funds was caused by a rival exchange selling its stake in FTT. Billions of dollars in customer deposits were lost along the way as the company froze assets and declared Chapter 11.