Notorious cryptocurrency mogul Sam Bankman-Fried (SBF) said in a Bahamian court today that he no longer intends to fight extradition to the United States after previously opposing it. However, the plan caught his lawyers by surprise, leading to chaos in the courtroom — and a judge eventually sent the FTX founder back to prison.
Cryptocurrency exchange FTX went bankrupt last month in a well-publicized collapse. The company lets customers buy, sell and store large numbers of digital assets and bet on the future price of cryptocurrencies through derivatives products – and it is one of the most popular exchanges in the world.
But things worsened after it was discovered that the company did not have enough funds to back the client’s assets. According to newly appointed FTX CEO John J. Ray III, this is alleged because Alameda Research, a trading firm also founded by Bankman-Fried, could use FTX client assets in its way without oversight.
The company failed, Ray said, because it was made up of “a minimal number of inexperienced and immature people.” Meanwhile, James Bromley, an advisor to FTX’s new management, described the exchange’s collapse as “one of the most sudden and difficult failures in American corporate history.”