Business Maverick

International Finance

Bankman-Fried sent back to Bahamian jail after catching lawyer off-guard with US extradition plan

Bankman-Fried sent back to Bahamian jail after catching lawyer off-guard with US extradition plan
Sam Bankman-Fried (Photo: Jeenah Moon/Bloomberg)

After hitting an abrupt and confusing snag in a Bahamas courtroom, Sam Bankman-Fried’s preparations to be extradited to the US appear back on track.

FTX co-founder Bankman-Fried said in court on Monday that he was ready to waive his right to fight extradition to the US where he faces fraud charges over the collapse of the cryptocurrency exchange. However, his local lawyer, Jerone Roberts, said in the same hearing that he wasn’t aware of the plan.

Ultimately, the proceedings were adjourned, and Bankman-Fried was ordered to return to jail. Later in the day, Roberts told local media that Bankman-Fried wouldn’t fight extradition and could be back in court again this week. Attempts to reach Roberts were unsuccessful.

The chaotic scene is the latest twist in the high-stakes drama that has been playing out since Bankman-Fried was arrested last week at the request of US authorities. 

Although he initially said that he would fight extradition, Bankman-Fried has more recently indicated in private conversations that he was preparing to return to the US as soon as Monday, according to a person with direct knowledge of the matter. 

Bankman-Fried’s change in attitude is in part tied to the expectation that he’ll be able to get bail in the US, according to the person, who asked not to be identified due to the sensitivity of the matter.

Former federal prosecutor Tim Howard said a US bail deal for Bankman-Fried is definitely a possibility. Willingly returning to the US would help calm fears that he’s a flight risk, though he’d still have other conditions to meet.

“If the defendant was to offer a substantial bail package secured by cash, home detention and location monitoring, I could see a situation where prosecutors would agree to that,” he said.

Representatives for Bankman-Fried and the US Attorney’s Office for the Southern District of New York, which has been handling the case, declined to comment on Monday.

Bankman-Fried wore a blue suit and a white shirt to Monday’s proceedings, which played out in a courtroom packed with about 20 people, including several who appeared to work for the US government and members of the press. There was confusion from the start as Roberts asked for clarification on the purpose of the hearing, and said he was “shocked” to find out that his client was in court.

“Whatever trail got him here this morning, it did not involve me,” said Roberts. “I am not at the front of what is going on here, I am reacting.”

Recess called

A brief recess was called shortly after the hearing began.

Bankman-Fried kept his head down for much of the proceedings, his right arm twitching. When asked to stand before the judge, his jacket was off, his shirt was untucked and his sleeves were rolled up. A bailiff ordered him to keep his hands out of his pocket.

After the judge adjourned the proceedings, in the cleared out courtroom, Bankman-Fried and Roberts appeared to convene a conference call. 

Before his arrest, in numerous interviews following FTX’s implosion last month, the 30-year-old denied knowingly committing fraud or breaking the law. 

Since being denied bail in the Bahamas court last week, Bankman-Fried has been in a notorious correctional facility on the outskirts of Nassau known as Fox Hill. 

At Monday’s hearing the judge ordered him returned to the facility. 

FTX and scores of related companies declared bankruptcy last month after three years of frenetic growth. At its peak, the exchange was worth $32-billion.

Authorities in both the Bahamas and the US are continuing to probe Bankman-Fried’s involvement in FTX’s collapse last month. The firm was headquartered in the Bahamas.

Gallery

Comments - Please in order to comment.

Please peer review 3 community comments before your comment can be posted

X

This article is free to read.

Sign up for free or sign in to continue reading.

Unlike our competitors, we don’t force you to pay to read the news but we do need your email address to make your experience better.


Nearly there! Create a password to finish signing up with us:

Please enter your password or get a sign in link if you’ve forgotten

Open Sesame! Thanks for signing up.