FTX founder Sam Bankman-Fried’s failure to secure bail in the Bahamas on Tuesday increases the likelihood that he will agree to extradition to the United States to face fraud charges, legal experts said.
A judge ruled Bankmann-Fried Being held at the Bahamas Department of Justice until at least February 8, citing his “great” risk of absconding after New York federal prosecutors filed charges against him over the crash of his once-high-flying plane crypto Exchange, FTX.
Before his bail was denied, Bankman-Fried’s attorney said his client was not waiving his right to an extradition hearing. If he fights deportation, the process could take up to a year or more of hearings and appeals with little hope of success in the end, experts said.
The facility where Bankman-Fried is being held is also known as Fox Hill Prison. A lawyer for Bankman-Fried did not immediately respond to a request for comment.
Lawyers specializing in extradition say the time spent abroad often encourages defendants to agree to extradition to their home countries.
“The extradition process can take a year or more,” said David Haas, a US attorney who has defended people facing extradition. “Normally, people don’t want to be in prison abroad. This is usually a major factor in whether someone will contest extradition.”
An official at the Bahamas Correctional Facility said Tuesday that Bankman-Fried will initially be held in the facility’s medical unit until staff have determined the appropriate place for him. Bankman-Fried is scheduled to appear before another Bahamas judge on February 8.
Like most extradition treaties, the US-Bahamas treaty provides that alleged criminal offenses will be treated as crimes in both countries. Bankman-Fried is unlikely to convince a Bahamian court that the securities fraud and wire fraud he is accused of are not illegal in the Bahamas, lawyers said.
“Bahamian law generally reflects American law on these matters,” said white-collar defense attorney Jack Sharman. “I wouldn’t expect differences in the law to be a big extradition issue.”
Bankman-Fried could also argue that he would not receive a fair trial in the United States, would be unfairly punished there, or would be treated inhumanely, factors a Bahamian court would have to consider before clearing him for extradition.
That has helped some defendants delay extradition, notably WikiLeaks founder Julian Assange, who has fought for years against extradition from the UK to the US to face charges of allegedly leaking classified military information.
But US prosecutors recently won a positive extradition ruling against Assange, giving assurances that he would remain safely in custody. U.S. and Bahamas authorities could likely negotiate a similar agreement, Haas said.
“Usually there is a diplomatic component. It’s all governed by contracts,” Haas said.
© Thomson Reuters 2022
