Disgraced cryptocurrency exchange executive Sam Bankman-Fried has changed his mind about fighting the United States’ attempt to extradite him from the Bahamas. Bankman-Fried stands accused of defrauding the investors in his now-defunct exchange, FTX, out of billions of dollars. The 30-year old former billionaire is expected to waive his extradition contest in a Monday court hearing, according to Reuters. The change in Bankman-Fried’s legal strategy comes after a brief stay of just four days in the squalid Fox Hill prison. It’s unclear why Bankman-Fried has opted not to fight extradition, but the conditions in Bahamanian prison are dire. A correctional officer at the overcrowded facility has described it as “not being fit for humanity.” Video footage from the facility shows conditions poor — even by the standards of a third world country.
The former CEO previously tried to convince a judge to free him from detention, citing his own vegan diet and need for multiple medications, according to Coindesk. Magistrate Judge Joyann Ferguson-Pratt rejected this request, ordering that the alleged fraudster be detained as his extradition was adjudicated. Bankman-Fried operated his now-defunct exchange out of the Bahamas, a business decision that raised eyebrows as to FTX’s corporate governance. The former crypto billionaire lived in an ornate penthouse before his incarceration, according to Bloomberg. The Securities and Exchange Commission is accusing the former executive of purposely hiding his personal use of FTX funds from the company’s investors, using what was billed as a cryptocurrency bank as his own cash cow. The ex-billionaire is facing eight federal charges filed in the Southern District of New York — a venue that is likely to land him in Brooklyn’s Metropolitan Detention Center, according to Reuters. In addition to fraud charges pertaining to FTX, Bankman-Fried faces campaign finance charges, according to CNBC. Prosecutors allege that Bankman-Fried used illicit FTX exchange money to fund a massive political donation operation. The crypto executive was the second biggest donor to Democrats in the 2022 midterm elections — behind George Soros, according to the New York Times. This article appeared originally on The Western Journal.
Prison tour today.Check out @GuardianNassau for full tour video in a bit. pic.twitter.com/oGQnFetjcv — Jasper Williams-Ward (@jasperward94) November 28, 2022