Sam Bankman-Fried, the founder and former CEO of crypto exchange FTX, is expected to legally forgo his extradition to the United States, Reuters reported on Monday, citing sources with knowledge of the situation. This comes only days after he was remanded to a Bahamian jail for a hearing.

Bankman-Fried has been detained in the Bahamas since his arrest on Monday, when he was denied bail in connection with multiple U.S. criminal allegations.

Before his detention, in multiple interviews following FTX’s downfall last month, Bankman-Fried denied orchestrating a multi-year fraud scheme and abusing the law.

Extradition will pave the way for a protracted legal showdown in the U.S. On Tuesday, the Southern District of New York of the Justice Department unsealed a 13-page criminal indictment.

FTX founder and former CEO Sam Bankman-Fried. Image: Reuters

Sam Bankman-Fried To Say Yes To U.S. Extradition?

The indictment alleges that Bankman-Fried used billions of dollars in stolen customer deposits to pay expenditures and debts, as well as to make investments for his cryptocurrency hedge fund, Alameda Research.

It was unclear why Sam Bankman-Fried changed his mind and decided not to challenge his extradition. His attorneys did not respond to comment requests. A representative from the U.S. attorney’s office declined to comment. He continues to reside in the Bahamas, where FTX was headquartered.

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