FTX Founder Sam Bankman-Fried Agrees To Extradition

FTX founder Sam Bankman-Fried agreed to be extradited to the United States in relation to charges stemming from the collapse of his cryptocurrency exchange.

Bankman-Fried appeared at a Magaistrate’s Court in the Bahamas on Wednesday (December 21) after being arrested by local authorities last week and will head to Odyssey Aviation to return to the U.S., Bahamian news organization Our News reported via the Associated Press.

Bankman-Fried was charged by the Securities and Exchange Commission with defrauding investors and customers in relation to the company on December 13, CNN reports.

The SEC accused Bankman-Fried and other FTX executives of orchestrating “a years-long fraud” to divert unlimited funds to his crypoto trading firm Alameda Research.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” SEC Chair Gary Gensler said in a statement obtained by CNN.

The Commodity Futures Trading Commission, another regulator, was also charging Bankman-Fried, also charged Bankman-Fried fraud and material and misrepresentations in connection with the sale of digital commodities in interstate commerce, according to a news release.

Last month, FTX began the process of filing for Chapter 11 bankruptcy following Bankman-Fried’s decision to step down as CEO.

“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders,” said John J. Ray III, who took over as CEO, according to the company’s news release shared on November 11. “The FTX Group has valuable assets that can only be effectively administered in an organized joint process. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency. Stakeholders should understand that events have been fast-moving and the new team is engaged only recently. Stakeholders should review the materials filed on the docket of the proceedings over the coming days for more information.”

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