A judge has decided to keep Sam Bankman-Fried (SBF) in custody as his legal team fights to keep him out of the United States (US).
Extradition to the United States
A judge in the Bahamas has denied FTX founder Sam Bankman-Fried’s request to be released on bail. The decision came hours after SBF informed the Bahamian courts that it intended to challenge any extradition order to the US.
The Chief Magistrate of the Bahamas is JoyAnn Ferguson-Pratt. Ferguson-Pratt rejected Bankman-Fried’s petition to be released on bail on Tuesday. This is an amount of $250,000. Instead, he ordered SBF to be sent to the country’s corrections department.
Ryan Pinder, the Attorney General and Secretary of Legal Affairs of the Bahamas, said in a statement Monday that his office had been notified that the US is likely to seek his extradition.
The US and the Bahamas have had an extradition treaty since 1994. This allows both countries to extradite suspects for charges that are considered crimes in both countries. These are crimes that carry prison terms of one year or more. The process is usually administrative, with no requirement or ability to plead guilty or innocence.
Bankman-Fried has scheduled an extradition hearing for February 8, 2023.
Possibly a significant prison sentence
Bankman-Fried was arrested Monday by Bahamian police at the request of US authorities. In the United States, SBF is currently facing federal criminal charges from the Department of Justice. SBF is suspected of, among other things, conspiracy to commit fraud with customers and lenders, money laundering and conspiracy to defraud the United States.
The Securities & Exchange Commission (SEC) issued an official complaint shortly afterwards. It stated that Bankman-Fried had orchestrated a scheme to defraud equity investors in FTX. The agency said its investigation into the alleged misconduct is ongoing.
In an interview with journalist Tiffany Fong last month, SBF said it had donated to both Democratic and Republican candidates. The GOP donations, he said, were backed by dirty money to avoid media attention. A spokesman for the Justice Department said:
SBF and its co-conspirators paid millions of dollars in political contributions ahead of the 2022 election. These amounts were funded by Alameda Research. However, SBF made sure that the contributions were reported on behalf of co-conspirators, not his name.
In the indictment, the U.S. Department of Justice said all charges against SBF carry a maximum sentence of 20 years in prison. According to prosecutors, this means that SBF could receive a maximum sentence of 115 years in total. Provided he is found guilty on all counts.