Sam Bankman-Fried told a judge in the Bahamas on Wednesday that he would be extradited to the US to face fraud charges.
Mr. Bankman- Fried could be in New York by Wednesday afternoon to face charges. He will be in federal district court in Manhattan once in New York. The charges were related to the collapse of Mr. Bankman-Fried's FTX exchange.
Mr. Bankman- Fried has been in custody in the Bahamas since his arrest in December. He told the court that he had signed the documents. Jerone Roberts, Mr. Bankman-Fried's lawyer, said that Mr. Bankman-Fried wanted to leave the country as soon as possible.
Mr Bankman- Fried told the judge that he was doing well. Mr Bankman- Fried said that he was in good health.
Mr. Bankman-Fried arrived at Fox Hill after a breakfast of toast and jam, with a plastic bag on his lap, according to the facility's head administrator.
FTX is a question. One of the world's largestcryptocurrencies exchanges is now bankrupt. It gave customers the ability to trade digital currency for other digital currency or traditional money. Risky trading options that are not legal in the U.S. were built into the company's business.
Sam Bankman- Fried is a person. He is the founder and former CEO of FTX. He was a major donor to the Democratic Party and was known for his commitment to giving away his wealth in efficient and logical ways.
FTX's troubles began. The chief executive of the world's largest exchange sold his stake in FTX to Mr. Bankman-Fried in exchange for a number of FTT token. Mr. Zhao said in November that he was going to sell the token. The move caused the price of FTT to fall.
FTX's collapse was caused by something. The price went down after Mr. Zhao announced. The company had an $8 billion shortfall due to traders withdrawing. FTX was forced to file for bankruptcy because of a loan offered by its main rival.
Mr. Bankman- Fried was arrested. The Justice Department and Securities and Exchange Commission are looking into whether FTX used customer funds to prop up Alameda Research, a platform that Mr. Bankman- Fried helped start. Mr. Bankman- Fried was arrested in the Bahamas for lying to investors. Civil fraud charges were filed by the S.E.C. the next day.
Mark Cohen, a lawyer in New York, is expected to handle Mr. Bankman- Fried's criminal defense.
Before Mr. Bankman-Fried was extradited to the United States, his legal team had been working on a bail package. Mr. Bankman- Fried could be released on bail with strict conditions, including home confinement and electronic monitoring.
A judge must approve bail arrangements.
Mr. Bankman- Fried will be extradited to the US at the end of the week.
Mr. Bankman- Fried was expected to agree to be extradited to the United States. The hearing became chaotic as Mr. Roberts questioned his client's willingness to go ahead with the transfer.
Mr. Roberts announced at a hastily arranged news conference that Mr. Bankman-Fried would be extradited.
When a run on deposits exposed an $8 billion hole in FTX's accounts, there was a new twist in the legal drama. Mr. Bankman-Fried is accused of swindling customers, investors and banks by redirecting billions of dollars in customer funds to a firm that was tied to FTX.
According to prosecutors and U.S. regulators, Mr. Bankman-Fried has used customer money to finance lavish real estate purchases in the Bahamas, investments in other companies, political contributions and a glamorous marketing campaign.
FTX filed for Chapter 11 in November and Mr. Bankman- Fried resigned as CEO. He was indicted in the United States District Court for the Southern District of New York.
According to Damian Williams, the US attorney for the Southern District of New York, the investigation is continuing and that additional charges are possible.
Mr. Williams is scheduled to hold a news conference on Wednesday.
Benjamin Weiser contributed reporting.
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