The CEO of the defunct cryptocurrency exchange FTX, Sam Bankman-Fried, has consented to extradition to the US to face charges, according to information obtained by the BBC.
The 30-year-old, who resides in the Bahamas, is charged with committing “one of the largest financial frauds in US history,” according to US authorities.
The BBC was informed by a source close to Mr. Bankman-Fried, who denies the accusations, that he had consented to be extradited.
Many people are unable to withdraw money because FTX filed for bankruptcy.
FTX owed its 50 largest creditors nearly $3.1 billion (£2.5 billion), per a court document.
It is not clear when Mr Bankman-Fried will be extradited to the US, following his arrest on 12 December.
Among the most serious allegations against him is that he used billions of dollars of customer funds to prop up his investment trading company Alameda.
Last week, Damian Williams, the US Attorney for the Southern District of New York, said Mr Bankman-Fried was accused one of the largest frauds in US history.
The FTX founder was also accused of using “tens of millions” in ill-gotten gains for illegal campaign contributions to Democrats and Republicans alike, Mr Williams said.
The Securities and Exchange Commission said the man who was formerly nicknamed the “King Of Crypto” had built a “house of cards on a foundation of deception”.
However, Mr Bankman-Fried has sought to distance himself from accusations of illegal activity and in a BBC News interview before his arrest said: “I didn’t knowingly commit fraud. I don’t think I committed fraud. I didn’t want any of this to happen. I was certainly not nearly as competent as I thought I was.”
Mr Bankman-Fried has also denied allegations he must have been aware that Alameda Research was using FTX customer funds.
The FTX exchange allowed customers to trade normal money for cryptocurrencies such as Bitcoin.
Cryptocurrencies are not traditional currencies, but are stored online and act more like investment vehicles or securities – often with a high degree of volatility.
FTX had an estimated 1.2 million registered users who were using the exchange, but many have been left wondering if they will ever get back their cash trapped in FTX’s digital wallets.
Mr Bankman-Fried was once viewed as a young version of legendary US investor Warren Buffett, and as recently as late October had a net worth estimated at more than $15bn.
Source: BBC.com