Sam Bankman-Fried (SBF), the disgraced founder of the crypto exchange ftxHas been extradited to the United States and is set to appear before a judge on Thursday.
A court appearance is expected Thursday afternoon in Manhattan federal court. according to the New York Post report goodBankman-Fried’s mother, Barbara Fried, is seen arriving at the Pearl Street Courthouse hours before the court session was to begin.
Bankman-Fried appeared in a New York court on Wednesday after being flown on a US government plane from the Bahamas to New York, where she has spent the past few days. the infamous fox hill detention facility,
Bankman-Fried was taken away by US federal agents on her journey back to her homeland.
Former business partners turn on SBF
News of the extradition comes as reports suggest that former Bankman-Fried business partners Caroline Ellison and Gary Wang have turned on him, possibly in an effort to get a lighter sentence for themselves.
The fact that the two are cooperating with the investigation was confirmed in a recent statement from the US Attorney for the Southern District of New York.
Furthermore, after the Securities and Exchange Commission (SEC) civil complaint against the two was made public, the document was shared on Twitter, where users showed how it clearly built on Ellison and Wang’s involvement. .
The documents paint a damning picture of Bankman-Fried, portraying him as the main figure behind the many wrongdoings that ultimately led to the downfall of FTX.
“Carolyn is wisely throwing Sam under the bus,” commented Twitter user compound248.
investigation is going on fast
The remarkable speed at which the investigation has proceeded was pointed out today by crypto-focused attorney Jake Chervinsky, who noted that Bankman-Fried was debating future crypto regulations just two months ago.
“Today, the SBF is in the custody of the FBI and its main co-conspirators have pleaded guilty,” wrote Chervinsky, “It’s amazing how fast this all has come to light.”
FTT tokens rigged by Alameda
Among the allegations in the documents is that Alameda Research, a crypto trading firm owned by Bankman-Fried and led by Caroline Ellison, manipulated the price of FTX’s exchange token FTT.
,[…] At Bankman-Fried’s direction, “Ellison would buy large quantities of FTT on the open market, which would drive up its price.” The SEC complaint said the FTT was in turn used as collateral for undisclosed loans by FTX to Alameda. giving the trading firm “a virtually unlimited ‘line of credit’ funded by the platform’s customers”.
Extradition follows days of confusion
Wednesday’s extradition to the US came a day later Bankman-Fried signed papers to be exempt from extradition hearing From the Bahamas, following confusion on the issue. On Tuesday, the crypto boss did not appear in court while his lawyer and US consulate officials waited for two hours.
Earlier, at Monday’s hearing, Bankman-Fried refused to waive extradition, surprising her lawyer and causing confusion in the courtroom. After this the judge sent him back to jail.
Jaron Roberts, a Bahamian attorney for Bankman-Fried, said at the time, “I was not involved in the trail they found here this morning.”
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