Sam Bankman-Fried WON’T contest extradition to US on $1bn FTX crypto fraud charges

Former FTX CEO Sam Bankman-Fried has backtracked on his decision to challenge his extradition from the Bahamas to the United States to face fraud charges, and will appear in court in the Bahamas on Monday to announce his decision, according to a report.

The cryptocurrency mogul was indicted in federal court in Manhattan on December 13 and accused of engaging in a scheme to defraud FTX customers.

His decision to consent to extradition would pave the way for him to appear in U.S. court to face charges of using stolen customer deposits to pay for expenses and debts and to make investments on behalf of his crypto hedge fund, Alameda Research LLC.

Prosecutors investigating Bankman-Fried’s alleged cryptocurrency fraud are also looking into who else knew of the scheme – pushing his business associate and right-wing reflection into the spotlight.

They are also asking Democrats and Republicans to provide details of the donations received by Bankman-Fried, 30, a Democrat mega-donor, and his associates. 

Ryan Salame, 29, was co-chief executive of FTX Digital Markets, the company’s subsidiary in the Bahamas, and was fast emerging as a serious figure in Republican donor circles.

Sam Bankman-Fried, 30, is seen in the Bahamas on December 13. On Saturday it emerged he will not contest his extradition to the US on fraud charges

Bankman-Fried is the only FTX official to face charges so far, but prosecutors are looking into his associates and colleagues

Salame split his time between the Bahamas, where Bankman-Fried’s FTX was based, and Washington DC, where he lived with his cryptocurrency lobbyist girlfriend, Michelle Bond.

And while Bankman-Fried gave $40 million to Democrat campaigns in the midterms, Salame was backing the opposite site, with $24 million given to Republicans.

On Saturday, The New York Times reported that prosecutors with the United States attorney’s office for the Southern District of New York have been emailing political operatives requesting details of donations.

Both Republicans and Democrats have been contacted, the paper reported.

Some politicians, including Hakeem Jeffries, the New York congressman who is set to become the Democrat leader of the House, and Representative-elect Aaron Bean, a Republican from Florida, have either returned donations linked to FTX or gave the money to charity after the company became embroiled in scandal. 

Other groups say they are setting the cash aside for possible restitution to victims of the alleged scheme.