FTX went bankrupt because the company didn’t have enough cash to repay users’ debts. Client assets were transferred from FTX to the investment fund Alameda, which is owned by Bankman-Fried. They got involved in investments there.
Initially, Bankman-Fried tried to challenge his extradition to the United States. His plea now is against the advice of his lawyer in the Bahamas, the latter told The New York Times on Monday.
Bankman-Fried’s counsel’s announcement came ahead of a tumultuous hearing in the Bahamas on Monday, during which the American entrepreneur initially said he wanted more time to reconsider the charges against him. Later that day, he announced through his lawyer that he still wanted to stand trial in the United States.
Bankman-Fried, 30, became a multi-billionaire in 2020 and 2021 thanks to the boom in crypto currencies. Bankman-Fried was involved in luxury real estate and campaign contributions, according to U.S. authorities, who alleged she embezzled client funds. Both Democratic and Republican politicians ran for office earlier this year in midterm elections.
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