- The return of the creator has taken place when two of his partners have pleaded guilty to electronic fraud.
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| The founder of the FTX cryptocurrency platform, Sam Bankman-Fried. / ABC News |
FTX founder San Bankman-Fried returns to New York for trial after being extradited from the Bahamas
The founder of the FTX cryptocurrency platform, Sam Bankman-Fried, arrived in New York last Wednesday night to be tried on the multiple charges attributed to him by the US authorities after the bankruptcy of his company.
Sam Bankman-Fried, landed back in the United States after being extradited from the Bahamas, where he was detained, and agreed to be sent back to New York for trial.
According to the Fox chain, the alleged fraudster was seen leaving the runway, after arriving at a New York airport, surrounded by law enforcement officers, before he was put in a van and left escorted by a caravan of vehicles.
The detainee will appear before a federal judge "as soon as possible," Manhattan federal prosecutor Damian Williams said in a statement, The New York Post reported.
Bankman-Fried in the Bahamas said it was accepting his extradition in part because of its "desire to compensate customers affected" by the bankruptcy of FTX, which filed for bankruptcy on November 11 after a rapid collapse after many users rushed to withdraw their funds amid reports that questioned the solvency of the company.
Bankman-Fried's legal team reported last Monday that their client decided to waive his right to challenge extradition, which means that he will be tried in the United States, where he is accused of eight counts by the Attorney General's Office for the Southern District of New York.
Among the crimes charged against him are wire fraud, money laundering, and violation of political campaign finance laws.
Partners found guilty
The return of the FTX creator came just as two of his partners have pleaded guilty to wire fraud, among other crimes, Manhattan federal prosecutor Damian Williams announced last Wednesday.
Former CEO of Alameda Research, a company founded by Bankman-Fried that was FTX's investment arm, Carolyn Ellison, and FTX co-founder Gary Wang, pleaded guilty to criminal charges "in connection with their role in the fraud that contributed to the collapse" of the company, Williams said in a video.
Williams added that the two are collaborating on his investigation into "the big fraud project" allegedly led by the cryptocurrency guru and that contributed to the spectacular collapse of the company, which has caused havoc in the sector.
The United States Securities and Exchange Commission (SEC) maintains that Bankman-Fried organized a fraudulent scheme for years to hide from FTX investors the diversion of client funds to Alameda Research.
For his part, the prosecutor assured that the investigation "advances rapidly."
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