Sam Bankman-Fried (SBF), the discredited founder of the cryptocurrency exchange FTX, has been extradited to the United States and is scheduled to appear before a court on Thursday.
An afternoon court date at a federal court in Manhattan is scheduled for this coming Thursday. Barbara Fried, Bankman-mother, Fried’s was reportedly spotted arriving at the Pearl Street courtroom hours before the planned start of the court hearing, according to a New York Post article.
After spending the previous several days at the notorious Fox Hill prison facility in the Bahamas, Bankman-Fried was brought to New York on a government jet on Wednesday for his court appearance. Federal officials from the U.S. accompanied Bankman-Fried as he returned to his native country.
Opposition To SBF From Former Business Partners
The extradition announcement was announced at the same time as sources claimed former business associates of Bankman-Fried, Gary Wang and Caroline Ellison, had turned against him, potentially to receive lenient sentences for themselves.
In a recent statement, the U.S. Attorney for the Southern District of New York stated that the two are helping with the investigation.
In addition, the Securities and Exchange Commission’s (SEC) civil lawsuit against the two was uploaded on Twitter, where individuals demonstrated how it is unmistakably based on cooperation from Ellison and Wang.
According to the records, Bankman-Fried was primarily responsible for many bad decisions that finally caused FTX to fail.
The crypto-focused attorney Jake Chervinsky highlighted the investigation’s rapid progress today, noting that Bankman-Fried only considered potential crypto rules two months prior.
It’s incredible how quickly everything has come together, Chervinsky stated, adding that “now, SBF is in FBI custody, and his major co-conspirators have pled guilty.”
One of the allegations made in the documents is that Caroline Ellison, the CEO of Bankman-Fried-owned cryptocurrency trading company Alameda Research, manipulated the price of the exchange token FTT for FTX.
Ellison would buy a lot of FTT on the open market, supporting its price, at Bankman-instruction.” Fried’s The trading company was subsequently given “a nearly infinite ‘line of credit’ paid by the platform’s clients,'” according to the SEC’s complaint when FTT was used as collateral for hidden loans by FTX to Alameda.
After some complications surrounding the matter, Bankman-Fried signed paperwork the day before to forego an extradition hearing from the Bahamas, and on Wednesday, she was extradited to the U.S.
Even though his attorneys and representatives from the U.S. consulate waited for two hours on Tuesday, the crypto chief failed to appear in court.
Before that, Bankman-Fried refused to renounce extradition in a Monday hearing, surprising his attorney and causing uncertainty in the courtroom. The judge then returned him to custody.
Jerone Roberts, Bankman-Bahamian Fried’s attorney, claimed at the time, “Whatever trail that took him here this morning, it did not include me.”