PRIME Minister Phillip "Brave" Davis said yesterday that the government has no preference on where disgraced former FTX CEO Sam Bankman-Fried should be tried for his alleged involvement in defrauding customers and investors.
Mr Davis was asked about the government’s views on where his trial should be held on the sidelines of an event in Long Island yesterday.
However, he responded that the matter would entirely depend on the findings of local investigations versus that of the US.
The status of local investigations into FTX is still not clear.
“It depends on what the situation is at the moment,” the prime minister said. “I’m not quite clear. I was advised that he’s been appearing in court and he is volunteering to go back and that is why the court appearance was arranged for this (Monday) morning, I’m advised,” the prime minister said.
“The outcome of it, I’ve not heard yet because I’ve not spoken to the attorney general to update me on what’s happening but again, that’s the throes of adversarial and contentious criminal proceedings.”
He also said: “We have no preference. It depends on what our investigations would reveal compared to what the US investigations would reveal.”
Mr Davis spoke before Bankman-Fried’s legal team advised reporters that he has decided to waive his right to fight extradition, meaning he will return to the United States to face trial.
The former billionaire was arrested and arraigned in the Magistrate’s Court last week at the request of the US government.
He faces several fraud charges in the US, including wire fraud, money laundering, conspiracy to commit fraud and violating campaign finance laws.
He has been on remand at the Bahamas Department of Correctional Services since then, but returned to court yesterday where he was expected to reverse his decision to fight extradition. However, there was some confusion as his legal team indicated a decision had not been made yet and that yesterday’s hearing was premature. Shortly after the court appearance — and once Bankman-Fried returned to remand — his local lawyers then announced to reporters that the American would not fight being returned home.
Bankman-Fried was initially told to return to court on February 8 after being denied bail when he was arraigned last week.
However, his lawyers later filed a new bail application which was set to be heard on January 17.
FTX, which is headquartered in The Bahamas, along with its affiliates filed for bankruptcy in the US last month after facing a liquidity crisis and coming under scrutiny following reports that it mismanaged customer assets.
To protect clients of the Bahamas’ flagship crypt currency investor, Bahamians regulators last month froze FTX’s assets by seizing control of the company, suspended its registration and applied for court approval to appoint joint provisional liquidators.
Despite FTX’s failure, the Davis administration has repeatedly said they believe The Bahamas will emerge from proceedings related to the crypto currency exchange with an enhanced reputation as a solid digital asset’s jurisdiction.
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