FTX founder Sam Bankman-Fried

Sam Bankman-Fried was photographed handcuffed Tuesday night after a judge denied him bail and remanded him to Bahamas' Fox Hill jail until February 2023.

Securities and Exchange Commission](https://www.cnbc.com/2022/12/13/sam-bankman-fried-ran-ftx-as-fraud-from-the-start-sec-charges.html) and [the Commodity Futures Trading Commission indicated](https://www.cnbc.com/2022/12/13/cftc-piles-on-with-new-charges-against-bankman-fried.html) that FTX had commingled customer funds with Alameda Research and that billions in customer deposits had been lost along the way. [reporting by CoinDesk](https://www.coindesk.com/business/2022/11/02/divisions-in-sam-bankman-frieds-crypto-empire-blur-on-his-trading-titan-alamedas-balance-sheet/) revealed a highly concentrated position in self-issued FTT coins, which Bankman-Fried's crypto hedge fund Alameda Research used as collateral for billions in crypto loans. [quashed any chance of Bankman-Fried's return](https://www.cnbc.com/2022/12/13/sam-bankman-fried-denied-bail-in-bahamas-on-ftx-fraud-charges-judge-cites-flight-risk.html) to his house. Citing a "great" risk of flight, the Bahamian justice remanded Bankman-Fried back to jail until his next scheduled hearing on Feb. [criminal charges in the United States](https://www.cnbc.com/2022/12/13/us-indicts-sam-bankman-fried-on-conspiracy-to-defraud-the-us-wire-fraud-securities-fraud-and-money-laundering.html), including securities fraud, campaign finance violations and money laundering, over the [implosion of his FTX crypto exchange](https://www.cnbc.com/2022/11/15/how-sam-bankman-frieds-ftx-alameda-empire-vanished-overnight.html). - Bankman-Fried has been charged in the U.S.

Sam Bankman-Fried's multibillion-dollar crypto empire was run primarily by "grossly inexperienced and unsophisticated individuals" who failed to institute ...

“His parents, by all accounts, appear deeply devoted to their son and have long been viewed as stand-up members of the Stanford faculty and legal academy.” On Tuesday, the couple were in the Nassau courtroom for their son’s arraignment. “Arguably, his qualifications and academic stature can work against him as part of any legal case, because the argument may be made that he really should have spotted problems.” Testifying before a House committee on Tuesday, Ray confirmed that his team is investigating his predecessor’s parents. That expertise could become a liability if he is eventually charged with wrongdoing. Bankman-Fried’s lawyer declined to comment when asked about scrutiny of his parents.

Parallel cases unveiled Tuesday morning charge Bankman-Fried with lying about how FTX would segregate and protect billions of dollars worth of customers' ...

A US report in 2020 described rat and maggot infestation as well as tiny cells with only buckets for toilets. Read more at straitstimes.com.

Losing a bail hearing often “causes a defendant to rethink whether they want to appeal the case or not because they don’t want to be sitting in a Bahamian jail”, he said. “He won’t get any special treatment from the inmates and the guards, like he did at the Albany condominium. One person said Bankman-Fried’s relatives called the prison on Tuesday night to ask whether vegan meals could be delivered to him.

Seen as a flight risk, SBF has been denied bail and detained in custody before extradition to the United States to face charges early next year. A massive fall ...

And for that, we have SBF to thank for. While innocent until proven guilty, millions of investors will be hard-pressed to believe the Bahamas gang are not complicit in crypto’s biggest downfall. FTX co-founder and Chief Technology Officer Gary Wang, along with Director of Engineering Nishad Singh, are also key players in this catastrophe. More so for a world-class swindler whose hubris has proved to be his greatest downfall. He donated millions to Biden’s presidential campaign, rubbed shoulders with supermodel Gisele Bundchen, and sat on a panel with former British Prime Minister Tony Blair. Another casualty of the collapse, Genesis Global Capital, has [halted customer withdrawal](https://www.coindesk.com/business/2022/11/16/genesis-crypto-lending-unit-is-halting-customer-withdrawals-in-wake-of-ftx-collapse/) and called in restructuring experts in a last-ditch effort to save the company.

The Giving Pledge is a collection of billionaires who promise to donate portions of their fortunes. After his dramatic financial collapse, Bankman-Fried has " ...

He's being held [in the notoriously dangerous Fox Hill prison](https://www.businessinsider.com/sam-bankman-fried-bahamian-prison-harsh-conditions-2022-12) in the Bahamas after a Bahamian judge denied his request for bail on Tuesday. He continued, "In the end, it's the work my friends and colleagues at foundations do that matters the most." Bankman-Fried joined a number of high-profile billionaires, including Warren Buffet and Bill Gates, when he signed the Giving Pledge in June.

The SEC, CFTC and DOJ treat the FTX founder as an ambitious and calculating criminal.

CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [strict set of editorial policies](/ethics/). There will be more horrendous skeletons in the closet (I’m particularly curious to learn more about what was really going on at all those nonprofits). The DOJ’s criminal fraud charges, for instance, are based on an email sent to an investor in the Southern District of New York on Sept. But the litany of criminal charges seems to affirm previous estimates that he could, at least in theory, be in prison for Presumably, the email claimed that the company was thriving when in fact it had already been wrung dry by the criminals in charge. That may lead him to pursue a jury trial instead of a deal, which is certainly what I’d love to see, too. They are unbelievably extensive and serious, with wire fraud, conspiracy and money laundering making up just three of the eight total charges. the undisclosed special treatment afforded to Alameda on the FTX platform [and] undisclosed risk stemming from FTX’s exposure to Alameda’s significant holdings of overvalued, illiquid assets such as FTX-affiliated tokens.” The SEC supervises securities, and its charges focus on Bankman-Fried’s fraud Despite the torrent of obscene revelations, there has been concern that Bankman-Fried’s recent media blitz, in which he portrayed himself as inept rather than malevolent, would succeed in softening the legal and regulatory response. You can subscribe to get the full

Former FTX co-CEO Ryan Salame disclosed "possible mishandling of clients' assets" by Sam Bankman-Fried to Bahamian regulators just before FTX bankruptcy ...

9, and was sent from the Securities Commission of the Bahamas to the commissioner of police. He had departed the Bahamas for the U.S. Commissioners understood Salame have said the fund movements and commingling allegedly authorized by Bankman-Fried were contrary to "normal corporate governance" practices." 9, according to the letter. The indictment, The letter included in the filing was dated Nov.

After the demise of his FTX crypto empire in November, Sam Bankman-Fried portrayed himself as a hapless but well-intentioned chief executive who made a ...

[filed for bankruptcy](https://www.bloomberg.com/news/articles/2022-11-11/ftx-com-goes-bankrupt-in-stunning-reversal-for-crypto-exchange). A day after his arrest in the Bahamas, the US Securities and Exchange Commission, Department of Justice and Commodity Futures Trading Commission [filed civil and criminal charges](https://www.bloomberg.com/news/articles/2022-12-13/sam-bankman-fried-arrested-in-bahamas-after-us-files-charges-lblzp008) against Bankman-Fried, including that he had orchestrated a scheme to bilk equity investors out of more than $1.8 billion. [portrayed himself](https://www.bloomberg.com/news/articles/2022-11-30/bankman-fried-denies-trying-to-commit-fraud-at-fallen-ftx-empire) as a hapless but well-intentioned chief executive who made a series of calamitous mistakes, but never knowingly committed fraud.

Up until his arrest Monday, Sam Bankman-Fried had done several interviews with journalists despite his lawyers telling him not to talk.

Sam-Bankman Fried is no longer a free man, after the Bahamas authorities took him into custody. Meanwhile, Binance CEO Changpeng “CZ” Zhao on Thursday said his ...

This is Mark DeCambre, Editor in Chief at MarketWatch. Sam-Bankman Fried is no longer a free man, after the Bahamas authorities took him into custody. We’ll dig into that a little of that and see what else is happening in bitcoin BTCUSD, ether ETHUSD and elsewhere in crypto.

The FTX founder has spent two days in sick bay at the Bahamas' Fox Hill prison, where he will remain until a hearing in February.

[reported](https://gothamist.com/news/prisoners-endure-a-nightmare-gulag-in-lower-manhattan-hidden-in-plain-sight) to feature filthy conditions, rodent and bug infestations, lack of adequate medical care, and violence and abuse at the hands of guards. If Bankman-Fried relents to extradition, he may not fare much better in the American prison system. And pre-written remarks Bankman-Fried had planned to make before Congress on Tuesday prior to his arrest detailed that the crypto executive has a prescription for Emsam, a patch-administered drug for clinical depression. If he’s determined to have “precarious health issues,” he may remain in the sick bay. Such assessments determine—typically in two days—to which section of the prison an inmate will be transferred. Since then, he’s remained in the prison’s sick bay, undergoing assessment of health and risk of self-harm.

Federal authorities are arguing Sam Bankman-Fried orchestrated a massive fraud, despite the former crypto CEO's insistence he was just in over his head.

It’s very compelling to a jury to see him talking,” he said, especially if Bankman-Fried opts out of taking the stand. But Bankman-Fried “directed FTX to divert billions more in customer assets” to maintain its ties to its lenders and keep the enterprise afloat. The SEC said the funds for “large political donations” came from customer deposits that Alameda took from FTX. Bankman-Fried tried to conceal the activity, the SEC says, setting up the bank accounts under an Alameda subsidiary called North Dimension that made no public mention of that affiliation “in an effort to hide the fact that the funds were being sent to an account controlled” by the hedge fund. He encouraged FTX customers to deposit traditional currency into bank accounts controlled by Alameda; and he allowed the hedge fund to draw from a “virtually limitless” line of credit at FTX funded by customer assets. He retained “direct decision-making authority over all of Alameda’s major trading, investment, and financial decisions,” the CFTC added, pointing out that he remained a signatory on the firm’s bank accounts. He said he earned the money, telling DealBook he took it from “basically, profits. The agency says he used the deposits to make “undisclosed venture investments, lavish real estate purchases, and large political donations.” Bankman-Fried said he didn’t control the firm. He’s in jail in the Bahamas. “If you’re trying to cover up something, it makes it more likely there was something to cover up.” And at every turn, prosecutors and regulators argue in extensive filings this week, Bankman-Fried lied to customers and investors.