Bankman-Fried Reconsiders Extradition as Legal Troubles Intensify
Sam Bankman-Fried, former FTX CEO, has reportedly reconsidered his earlier decision to contest extradition and is expected to appear in court in the Bahamas on Dec. 19 to seek a reversal, as reported by Reuters on Dec. 17, citing a person familiar with the matter.
By consenting to extradition, Bankman-Fried would be able to appear in a United States court. He faces severe charges including conspiracy to commit wire fraud on customers and lenders, securities fraud, commodities fraud, money laundering and conspiracy to defraud the United States and violate campaign finance laws.
This potential shift follows Bankman-Fried’s bail denial on Dec. 13 due to the “risk of flight.” His legal team argued that SBF does not possess a criminal record and is suffering from issues such as depression and insomnia. A second bail application was reportedly filed in the Bahamas Supreme Court on Dec. 15.
If convicted, Bankman-Fried could face a maximum sentence of 115 years in prison. Legal commentators have noted that there is still a lot to play out in this ongoing case before a final sentence is rendered, potentially stretching over the next few months or even years.
Former federal prosecutor Mark Cohen has been appointed by the former FTX CEO to act as his defense attorney. Cohen, co-founder of the law firm Cohen & Gresser, was also on the defense team for Ghislaine Maxwell in her high-profile child trafficking case.
Currently, Bankman-Fried is being held at Fox Hill Prison, the only prison in the Bahamas. A U.S. State Department report from 2021 described the conditions at Fox Hill as “harsh” and overcrowded, citing issues with poor sanitation and nutrition. Reports allege that detainees have faced physical abuse from correctional officers.
In related news, Caroline Ellison, the former CEO of Alameda Research (a sister company of FTX), has also formed a defense team. She is being represented by Stephanie Avakian, a former top crypto regulator with the United States Securities and Exchange Commission (SEC) who now chairs the Securities and Financial Services department at the law firm WilmerHale. During her tenure at the SEC, Avakian expanded oversight of cryptocurrency within the Enforcement Division.
