BREAKING: Former FTX CEO Sam Bankman-Fried remanded to prison

BREAKING: Former FTX CEO Sam Bankman-Fried remanded to prison
Sam Bankman-Fried

NASSAU, BAHAMAS — Sam Bankman-Fried, founder of the collapsed cryptocurrency exchange FTX, will spend the holidays in prison as he fights extradition to the United States.

Citing his access to “substantial finances”, Chief Magistrate Joyann Ferguson-Pratt said she did not believe there was any bail condition she could impose that would satisfy “he would not and could not abscond”.

Bankman-Fried has been remanded to the Bahamas Department of Corrections, and extradition proceedings have been adjourned until February 8, 2023.

As Ferguson-Pratt cleared the court to allow Bankman-Fried a few minutes to speak with his family and lawyers, he hung his head as he was embraced by his parents who appeared to be trying to encourage him.

Bankman-Fried did not waive his right to an extradition hearing before Chief Magistrate Joyann Ferguson-Pratt, which led to arguments over whether the court had the jurisdiction to consider bail given the circumstances.

Lead prosecutor Franklyn Williams was joined by attorney Cordell Frazier. Bankman-Fried is being represented by Jerone Roberts with Krystal Rolle, KC, and Kendrea Demeritte watching brief as counsel for him in related matters.

Roberts told the court that Bankman-Fried was prepared to fight extradition and is a fit candidate for bail given his permanent residency, investments in the country, and assistance with ongoing investigations.

Roberts said his client is a vegan and has suffered from depression, insomnia, and Attention Deficit Disorder. He said Bankman-Fried would not object bail conditions like ankle monitoring, daily reporting, curfew or a $250,000 cash bail.

For his part, lead prosecutor Franklyn Williams said Bankman-Fried’s actions to evade physical appearances in the United States evidenced that he has no intention of facing charges in the US.

Williams underscored all local investments could likely be subject to forfeiture, or liquidation proceedings, adding that SBF’s diminishing interests in The Bahamas made it more likely he would abscond.

He furthered SBF allegedly has deep connections and access to wealth and countries that would not likely engage in extradition proceedings.

Referencing an affidavit used to obtain a provisional warrant, Williams said SBF moved more than $300M to a crypto investment firm Modulo Capital in September 2022 ahead of the solvency crisis.

Police arrested Bankman-Fried yesterday over the alleged breach of various financial offenses related to the collapse of the crypto exchange.

In a statement yesterday, Attorney General Ryan Pinder confirmed the arrest followed the receipt of a formal request from the United States that it has filed criminal charges against Bankman-Fried and would likely request his extradition.

FTX owes its top 50 creditors nearly $3.1bn, according to court filings.

FTX was founded in 2019 and grew to become the world’s second-largest crypto exchange until operations crashed in early November when users withdrew some $6bn from the platform in three days.

The company filed for bankruptcy protection on November 11 after a rescue deal from leading crypto exchange Binance fell through, and Bankman-Fried resigned as CEO.

About Ava Turnquest

Ava Turnquest is the head of the Digital Department at Eyewitness News. Her most notable beat coverage spans but is not limited to politics, immigration and human rights, with a focus especially on minority groups. In 2018, she was nominated by the Bahamas Press Club for “The Eric Wilmott Award for Investigative Journalism”. Ava is deeply motivated by her passion about the role of fourth estate, and uses her pen to inform, educate and sensitize the public.