- Former FTX CEO has agreed to be extradited to the United States.
- Sam Bankman-Fried wanted to see the indictment filed against him in New York before agreeing to extradition.
- FTT price noted a 7.7% decline in the last 24 hours, establishing new lows around $0.860.
The FTX saga is seemingly coming to an end with the hearing underway and the exchange's CEO, Sam Bankman-Fried, placed under arrest. Due to FTX's reach all across the globe, the company is being investigated by many countries' authorities. However, Bankman-Fried has decided to bring his court proceedings back to America.
Sam Bankman-Fried comes home
FTX's former head, during a court appearance in Nassau, Bahamas, made the decision to be extradited to the United States. In doing so, Sam Bankman-Fried will now be facing fraud charges at the hands of the SEC and CFTC.
His return to the US has been a matter of discussion since his arrest in the Bahamas on December 12. While Magistrate Shaka Serville did not reach a clear decision, Bankman-Fried did. According to a Reuters report, the defendant's lawyer stated that following a recess, FTX's former CEO decided he wanted to see the indictment filed against him.
The indictment was filed last week in New York, and only after seeing this, Bankman-Fried decided to consent to the extradition. Taking note of the extradition, the Magistrate, during the hearing, stated,
"I can only be moved by Mr. Bankman-Fried, and he has not moved me".
The reason given by Bankman-Fried's lawyer, Jerone Roberts, for his agreement to be extradited was that he wanted to do right by the customers. He stated,
"We as counsel will prepare the necessary documents to trigger the court. Mr. Bankman-Fried wishes to put the customers right, and that is what has driven his decision."
FTX token loses value further
FTX token, FTT, noted a further decline in its price over the last 24 hours following Bankman-Fried's decision. The altcoin dipped by almost 17.2%, falling to a low of $0.862 before retracing and closing in the red losing 7.7%, to trade at $0.967 at the time of writing.
FTT/USD 1-day chart
The price decrease was triggered by Bankman-Fried's announcement since the rest of the market observed no such decline. Over the last 24 hours, the total market capitalization of the crypto space only lost $16 billion, sliding by 2%. Thus the broader market cues are relatively better than FTT's condition.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
US SEC sues Coinbase after regulatory crackdown on Binance
The US SEC said Tuesday that it sued crypto exchange Coinbase, alleging that the platform operates as an unregistered security exchange. The announcement comes a day after the regulator filed a similar lawsuit against Binance, in a sign that the clampdown is extending to key players in the industry.
Ethereum tokens worth $3.1 billion moved on the blockchain as traders brace for incoming selling pressure
Ethereum circulation climbed to 1.73 million tokens on June 6, signaling a rising utility of the altcoin. A large volume of Ethereum’s supply has moved off exchanges, likely to self-custody wallets, alongside the Securities & Exchange Commission’s (SEC) crackdown on Binance.
SEC triggers crypto bloodbath as Coinbase, Kraken brace for token delistings after Binance lawsuit
The Securities & Exchange Commission (SEC), the premier US financial regulator, now controls $115 billion in cryptocurrencies with its lawsuit against Binance. In its latest move against Binance Holdings Ltd., the regulator expanded a list of digital tokens deemed unregistered securities.
Optimism price could shoot up by 30% after OP whales accumulation spree
Optimism (OP) price shows strength despite the market-wide sell-off on June 5. Additionally, the technicals and on-chain metrics both strongly suggest a bullish future for OP holders.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.