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Crypto developer 'Fluffypony' fails in bid to have extradition from US declared illegal

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Riccardo Spagni.
Riccardo Spagni.
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The Supreme Court of Appeal (SCA) has dismissed a bid by South African crypto developer Riccardo Spagni to have his extradition from the US to SA on fraud charges declared illegal.  

Spagni, known in tech circles as "Fluffypony", is a former lead maintainer for privacy-focused cryptocurrency Monero.

He was extradited from the US to South Africa in July last year after he waived his right to an extradition hearing. 

Before he surrendered to US marshals to be put in a plane back home, Spagni launched review proceedings in the Western Cape High Court, arguing that the extradition request was illegal.

Spagni's legal team had argued that the director of public prosecutions was the wrong person to submit an extradition request. 

That application was dismissed with costs in April 2022. He flew back to SA roughly three months later to face trial in a case that dates back to 2011. 

The National Prosecuting Authority has accused Spagni of defrauding a baking company 12 years ago of around R1.4 million by submitting falsified invoices. Spagni has pleaded not guilty to the charges.

After the initial review bid was dismissed, Spagni's lawyers appealed to the SCA.  

While the acting director of public prosecutions in the Western Cape contended that the challenge was "moot" – Spagni had after all agreed to be extradited -  Spagni argued the court should still decide the case. 

The SCA ruled this week that, in light of the fact that Spagni was legally represented when he waived his rights to an extradition hearing in the US, he could not now challenge the validity of the extradition request. 

"It found that the appellant had failed to make out a case for this court to determine the validity of his extradition process as that would have no practical effect," the court said in a summary of its ruling. "The appeal was thus dismissed on mootness alone."

Spagni's fraud trial is expected to continue in the Regional Magistrate's Court in Cape Town. 

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