FTX founder agrees to United States extradition for alleged fraud charges

United States extradition – The former CEO of cryptocurrency exchange FTX, has reportedly agreed to be extradited to the United States to face charges, according to the BBC.

Sam Bankman-Fried, the former CEO of failed cryptocurrency exchange FTX, has agreed to be extradited to the United States to face charges of committing “one of the biggest financial frauds in US history,” according to US authorities and a source close to Bankman-Fried. The 30-year-old, who resides in the Bahamas, denies the allegations.

FTX has filed for bankruptcy, leaving many users unable to withdraw their funds. Court documents show that the company owed its 50 largest creditors approximately $3.1bn (£2.5bn). Bankman-Fried was arrested on December 12th, and a court hearing in the Bahamas scheduled for Wednesday may determine the process for his extradition to the US, according to Reuters.

One of the most serious accusations against Bankman-Fried is that he used billions of dollars of customer funds to support his investment trading firm, Alameda.

Damian Williams, the US Attorney for the Southern District of New York, announced last week that Sam Bankman-Fried, the founder of FTX, has been accused of committing one of the largest financial frauds in US history. Williams also stated that Bankman-Fried used “tens of millions” in illegal gains to make campaign contributions to both Democratic and Republican candidates.

The Securities and Exchange Commission described Bankman-Fried, formerly known as the “King of Crypto,” as having constructed a “house of cards on a foundation of deception.”

However, Bankman-Fried has denied any wrongdoing and claimed in a BBC News interview prior to his arrest that he “didn’t knowingly commit fraud” and was “not nearly as competent as [he] thought [he] was.” He has also denied allegations that he was aware that Alameda Research was using FTX customer funds.

FTX, an exchange that allowed customers to trade traditional currencies for cryptocurrencies like Bitcoin, had an estimated 1.2 million registered users at the time of its bankruptcy. Many of these users are now wondering if they will be able to retrieve the cash stored in FTX’s digital wallets. Bankman-Fried, who was once seen as a young version of Warren Buffett and had a net worth of over $15bn as recently as October, was once highly regarded in the cryptocurrency industry.