FTX’s Bankman-Fried Won’t Fight Extradition, but His Homecoming Could Be Messy

The FTX founder is going to give up his fight to avoid being extradited to the US.

CNBC and The Washington Post all reported that Bankman-Fried was giving up the flight fight after he was denied bail. The next bail hearing was in January.

The facility called "Fox Hill" is notorious for its poor conditions and overcrowding. He has been living in his own room in the max security wing.

It is unclear how quickly Bankman-Fried would be brought to the U.S., but federal prosecutors probably want to get started on the trial process. Bankman- Fried is facing more lawsuits from the Securities and Exchange Commission.

The man has been in a jail in the country for the past week. He has been watching movies and reading articles about himself in hopes of getting bail, according to the Post. He was supposed to testify before congress about the collapse of FTX, but federal charges and his arrest prevented him from doing so. John Ray III, FTX's current CEO, took to the hearing mic to talk about SBF and his crew of "grossly inexperienced and unsophisticated individuals."

Bankman-Fried is accused of lying to investors and customers by taking users' money deposited in his exchange and funneling it to his hedge fund. The company was ordered to write code to get around FTX's interest requirements and keep a negative balance sheet, even though no other entity was allowed that flexibility.

According to the U.S. Attorney's Office, the founder of FTX hid political contributions from the federal limit for campaign donations. FTX was one of the largest financial frauds in American history, according to the U.S. Attorney.

SBF faces up to 115 years in prison if he is found guilty on all counts. In financial fraud cases, defendants rarely get the highest end of penalties. The two people at the head of the Theranos fraud case were recently sentenced to over a decade in prison. The two people who got the higher end of sentences for financial fraud had more severe charges.

If he isn't brought elsewhere to keep him away from New York, the Metropolitan Detention Center in Brooklyn is likely to be his new home. A bail hearing must be held within 24 hours of Bankman-Fried's return to the US.

It is likely that attorneys will argue for no bail and declare SBF a flight risk, but knowing other major financial fraudsters likeHolmes were able to walk on bail, there's a good chance SBF will get the same.