NASSAU, Bahamas, Chief Magistrate Joyann Ferguson-Pratt Tuesday denied bail to the disgraced former chief executive officer of the collapsed cryptocurrency exchange FTX, Sam Bankman-Fried, who is contesting his extradition to the United States.
The magistrate remanded him to the Bahamas Department of Correctional Services until February 8, 2023.
In her ruling following lengthy legal arguments, the Chief Magistrate said she is of the view that the flight risk is so great that Bankman-Fried ought to be remanded to custody.
The former billionaire, who was arrested here on Monday night, faces warrants of arrest in the Southern District of New York, a federal warrant as well as a diplomatic note requesting his arrest on behalf of the US.
Bankman-Fried, who appeared in court in a blue suit and without handcuffs, had chosen not to waive his right to an extradition hearing and the matter of bail had to be considered.
His lawyer, Jerone Roberts, has argued that the court has jurisdiction to consider bail. However, prosecutor Franklyn Williams contended that the court does not have jurisdiction to do so.
Williams, who is representing the United States government, said Bankman-Fried is a flight risk, adding that the former FTX official will abscond and has good reason to do so. But Roberts argued that his client is a permanent resident who lives in the Bahamas.
On Monday night Attorney General Ryan Pinder, in a statement, said the arrest “followed receipt of formal notification from the United States that it has filed criminal charges against Bankman-Fried and is likely to request his extradition.”
Officers of the Financial Crimes Investigation Unit arrested Bankman-Fried at his apartment complex in Albany on various financial offenses against the laws of the United States, which are also offenses against the laws of The Bahamas.
According to the statement by the Attorney General, “as a result of the notification received and the material provided therewith, it was deemed appropriate for the Attorney General to seek the former FTX official’s arrest and hold him in custody.
“At such time as a formal request for extradition is made, The Bahamas intends to process it promptly, pursuant to Bahamian law and its treaty obligations with the United States.”
Prime Minister Phillip Davis said the Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX “who may have betrayed the public trust and broken the law.
“While the United States is pursuing criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere,” he added.
FTX, which is registered here as FTX Digital Markets Ltd., moved its headquarters from Hong Kong to The Bahamas last year, and the police in Nassau has already announced an investigation into FTX that had been backed by elite investors like BlackRock and Sequoia Capital, rapidly becoming one of the biggest crypto exchanges in the world.
II addition to the Securities Commission of The Bahamas (SCB) probe, the US Justice Department is also investigating FTX.
Last month FTX filed for bankruptcy in the US, leaving many users unable to withdraw their funds.
According to a court filing last month, FTX owed its 50 largest creditors almost US$ 3.1 billion.
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