Chief Magistrate of The Bahamas, Joyann Ferguson-Pratt Tuesday denied bail to the 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.
The former billionaire, who was arrested in The Bahamas 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 had chosen not to waive his right 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 offences against laws of the United States, which are also offences against laws of The Bahamas.
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.
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$3.1billion.
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