© Reuters. Sam Bankman-Fried, who based and led FTX till a liquidity crunch compelled the cryptocurrency change to declare chapter, is escorted out of the Justice of the Peace Courtroom constructing after his arrest in Nassau, Bahamas December 13, 2022. REUTERS/Dante Carrer
By Jack Queen
(Reuters) – FTX founder Sam Bankman-Fried’s failure to safe launch on bail within the Bahamas on Tuesday will increase the probability that he’ll consent to extradition to the US to face fraud expenses, authorized specialists stated.
A decide ordered Bankman-Fried to be held on the Bahamas Division of Corrections till at the least Feb. 8, citing his “nice” danger of flight after New York federal prosecutors unveiled expenses in opposition to him over the collapse of his as soon as high-flying crypto change, FTX.
Earlier than his bail was denied, Bankman-Fried’s lawyer stated his shopper was not waiving his proper to extradition proceedings. If he fights removing, the method might contain as much as a yr or extra of hearings and appeals with little hope of success ultimately, specialists stated.
The ability the place Bankman-Fried is being held is also referred to as Fox Hill Jail. A lawyer for Bankman-Fried didn’t instantly reply to a request for remark.
Attorneys who focus on extradition say time locked up abroad typically encourages defendants to consent to being transferred to their residence international locations.
“The extradition course of can take a yr or longer,” stated David Haas, a U.S. lawyer who has defended individuals going through extradition. “Often individuals don’t wish to sit in a jail abroad. That tends to be a significant factor in whether or not somebody challenges extradition.”
A Bahamian corrections official stated on Tuesday that Bankman-Fried will initially be held within the facility’s medical division till employees decide the suitable place for him. Bankman-Fried is scheduled to look earlier than one other Bahamian Justice of the Peace decide on Feb. 8.
Like most extradition treaties, the U.S.-Bahamas settlement requires alleged offenses to be thought of crimes in each international locations. Bankman-Fried is unlikely to persuade a Bahamian courtroom that the securities fraud and wire fraud he stands accused of will not be unlawful within the Bahamas, attorneys stated.
“Bahamian legislation typically displays American legislation in these issues,” stated white-collar legal protection lawyer Jack Sharman. “I would not anticipate variations within the legislation to be an enormous extradition drawback.”
Bankman-Fried might additionally argue that he wouldn’t obtain a good trial in the US, would face unjust punishment there or would endure inhumane therapy, components a Bahamian courtroom must take into account earlier than releasing him for extradition.
That has helped some defendants delay extradition, most notably WikiLeaks founder Julian Assange, who has for years fought extradition from the UK to the US to face expenses for allegedly leaking categorized army intelligence.
However U.S. prosecutors have not too long ago received favorable rulings in Assange’s extradition proceedings by providing assurances that he could be saved protected in custody. The U.S. and Bahamian authorities might seemingly dealer an analogous settlement, Haas stated.
“There’s normally a diplomatic part. That is all dealt with by means of treaties,” Haas stated.
