Sam Bankman-Fried, the former CEO of the bankrupt cryptocurrency exchange FTX, has accepted to be extradited to the United States to face charges.
US authorities have accused the 30-year-old Bahamian resident of perpetrating “one of the worst financial frauds in US history.”
Bankman-Fried, who denies the allegations, has consented to his extradition.
FTX has filed for bankruptcy, preventing many customers from withdrawing funds.
According to court documents, FTX owed its 50 largest creditors over $3.1 billion (£2.5 billion).
After his detention on December 12, it is unclear when Mr. Bankman-Fried will be extradited to the United States. Reuters said that a court hearing scheduled for Wednesday in the Bahamas might pave the way for his extradition to the United States.
Among the most significant claims against him is that he propped up his investment trading company Alameda with billions of dollars in customer monies.
US Attorney for the Southern District of New York Damian Williams stated last week that Mr. Bankman-Fried was accused of one of the greatest frauds in U.S. history.
Mr. Williams stated that the creator of FTX was also accused of utilizing “tens of millions” in ill-gotten gains to make unlawful campaign contributions to both Democrats and Republicans.
According to the Securities and Exchange Commission, the individual formerly known as the “King Of Crypto” constructed a “house of cards on a foundation of lies.”
However, Mr. Bankman-Fried has attempted to disassociate himself from allegations of unlawful conduct, and in an interview before his arrest, he stated: “I did not intentionally engage in fraud. I do not believe I have committed fraud. I did not wish for any of this to occur. I was by no means nearly as competent as I believed I was.”
Mr. Bankman-Fried has also refuted charges that he must have known Alameda Research was taking client monies from FTX.
The FTX exchange allowed clients to trade fiat currency for Bitcoin and other cryptocurrencies.
Cryptocurrencies are not traditional currencies; rather, they are held online and behave more like investment vehicles or stocks – frequently exhibiting a significant degree of volatility.
FTX had an estimated 1,2 million registered users that utilized the exchange, but many have been left wondering if they will ever be able to retrieve their funds from the exchange’s digital wallets.
Mr. Bankman-Fried was formerly seen as a younger counterpart of famed US investor Warren Buffett, and as of late October, he was projected to have a net worth of more than $15 billion.
