FTX founder Bankman-Fried goes back to prison

Status: 08/12/2023 11:31 a.m

The founder of the cryptocurrency exchange FTX, Bankman-Fried, was recently under house arrest. Now he has to go to prison. He is said to have tried to intimidate witnesses before the fraud process began.

The founder of the collapsed cryptocurrency exchange FTX, Sam Bankman-Fried, has to go to jail. Judge Lewis Kaplan ruled to lift the house arrest rule and send the 31-year-old into custody. This was announced by the court in New York. The judge then removed the bail option and ordered Bankman-Fried to leave his parents’ home in California and go to jail in Brooklyn, New York. The bail for his arrest was $250 million.

Bankman-Fried is said to have tried to intimidate witnesses, the court said. “He’s pushed the limits time and time again,” Kaplan said in announcing his decision, according to US media reports. The judge denied a defense motion to stay Bankman-Fried’s detention pending an appeal. Bankman-Fried was taken away in handcuffs after the hearing, the New York Times reported.

Trial begins on October 2nd

Former billionaire Bankman-Fried has been charged with 13 counts. The US authorities accuse him of “fraud of epic proportions” and money laundering. His trial is scheduled to begin on October 2nd. Bankman-Fried has pleaded not guilty.

The entrepreneur was arrested on December 12, 2022 at the instigation of the US judicial authorities in the Bahamas. FTX had its headquarters there. Before the collapse, the islands were one of the largest trading centers for so-called cryptocurrencies such as the digital money Bitcoin.

After rumors of irregularities and a failed rescue by arch-rival Binance, FTX slid into bankruptcy in November 2022. According to insiders, Bankman-Fried secretly transferred $10 billion in FTX client funds to Alameda. The collapse of FTX has rocked the crypto world.

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