FTX Founder Sam Bankman-Fried Gets Green Light For Legal Review In Bahamas Court

The legal proceedings against Sam Bankman-Fried, the founder of FTX FTT/USD crypto exchange, in the U.S. hit a roadblock as the Bahamas Supreme Court ruled in favor of allowing him to legally review the terms of his extradition from the Caribbean nation.

This development came to light on Tuesday and may result in a further delay of the additional charges that have been laid against him.

Bankman-Fried has been under scrutiny by the law since his cryptocurrency exchange crumbled in November.

U.S. prosecutors initially sought his extradition on the grounds of wire fraud and money laundering.

However, they later made an appeal to include more charges, such as bank fraud and bribery.

In response, Bankman-Fried pleaded not guilty to all the allegations and has endeavored to have many of them dropped.

Specifically, he has asserted his right to initiate a legal challenge before the Bahamas consents to any additions to the list of charges.

The Bahamas Supreme Court Judge, Loren Klein, proclaimed on Tuesday, “Leave is granted to the claimant to commence proceedings for judicial review.”

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Klein’s remarks are seen as a positive development for Bankman-Fried, as it allows him to dispute the stance adopted by the Bahamas Prime Minister and Attorney General.

Klein also stated, “All of the grounds advanced by the claimants disclose arguable claims with a real prospect of success.”

Furthermore, Judge Klein clarified that the government of the Bahamas cannot add new offenses until the completion of the legal procedure.

He rejected the Bahamas government's earlier stance that the subject of consenting to the U.S. request was simply an issue between sovereign nations.

Additionally, Klein mentioned that the review should be conducted “in an expedited manner,” although he refrained from making any presumptions about the outcome.

Mark Cohen, Bankman-Fried's attorney, in a subsequent filing on Tuesday, stated that he “intends to file an application for judicial review as directed by the Supreme Court and to continue pursuing his legal rights in The Bahamas.”

Cohen previously indicated that the legal proceedings in the Bahamas might span “months or years,” possibly pushing them past the scheduled October trial date in the U.S. or not leaving enough time to construct a defense against the added charges.

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