We note that the situation with the FTX founder seems ambiguous. And while Sam is clearly facing punishment – at least because of the abundance of accusations – some news resources are still trying to exonerate Bankman-Fried, which seems completely inappropriate.

In particular, the day before The New York Times did a separate piece on the attitude of Bahamians to Sam, where FTX was headquartered.

FTX founder Sam Bankman-Fried’s arrest

The piece noted that many citizens allegedly treat Bankman-Fried well. That said, this state of affairs can be attributed to the many donations Sam has made to churches, the police and other such organisations. However, the journalists’ efforts still seem rather biased – including in view of the billions of dollars of investor losses that the FTX collapse led to.

Where is Sam Bankman-Fried

Sam now spends his breaks between court sessions at his parents’ home in Palo Alto, California. He has to wear an ankle bracelet which will track his movements. That said, Bankman-Fried is not allowed to leave the house with a number of exceptions. The list of the latter includes exercise as well as addiction or mental health treatment. Incidentally, he is already making regular use of the former – Bankman-Fried goes for daily jogs under the supervision of security.

Ex-CEO of FTX Sam Bankman-Fried

According to Cointelegraph sources, Sam has been required to surrender his passport, in addition he cannot make transactions worth more than a thousand dollars without the approval of the authorities. He is also quite obviously not allowed to possess a firearm or any other dangerous object.

The aforementioned house in Palo Alto is located on the edge of the Stanford University campus. It costs about $4 million and has five bedrooms, three bathrooms and a swimming pool. Conditions are quite comfortable – especially when compared to a prison cell. However, the property had to be barricaded, as Bankman-Fried has been threatened with reprisals on more than one occasion: as a result, his house has become something of a tourist attraction. Sam’s family is spending about $10,000 a week on a private security firm, sources said.

Allegedly, the Bankman-Frieda family home

The measure chosen by the court for Sam did not please many cryptocurrency enthusiasts, who could have lost money due to the bankruptcy of cryptocurrency exchange FTX among other things. Here’s one of the comments on Twitter about it.

Sam Bankman-Fried will spend Christmas at home with his parents playing video games rather than locked up in a cell. What kind of justice is that?

FTX Arena stadium with bankrupt stock exchange logo

However, other commentators have pointed out that Sam’s case so far is a shining testament to the workings of the US judicial system. Here’s a relevant quote.

He may be guilty, but as an American I can be proud that we have everyone innocent until proven guilty.

Bankman-Fried is next due to appear in court on January 3, where he may among other things plead guilty to several counts related to the collapse of his cryptocurrency exchange FTX. Sam will appear before District Judge Lewis Kaplan, who replaced his predecessor in the case, Ronnie Abrams.

Judge Kaplan was appointed to hear the case on December 27 after Judge Ronnie Abrams recused herself due to links between FTX and the law firm Davis Polk & Wardwell, of which her husband is a partner. That firm had been advising FTX in 2021.

Bankman-Fried had repeatedly stated before his arrest that he did not believe he was criminally responsible for his actions as FTX CEO. He repeatedly cited bureaucracy and accounting errors – all to make himself look like a victim of circumstances. But his two closest people in the FTX and Alameda management in the form of Gary Wang and Caroline Ellison have already gone along with the authorities, so it is unlikely that Sam will resist for long on this issue.


We think the Sam Bunkman-Fried situation does demonstrate a curious difference in the US judicial system. Although the extent of Sam's and other FTX and Alameda management's fraud is already clear, the terms of punishment will be decided after the judge's decision. In addition, as can be deduced from sources, the Bankman-Friede trial will be quite soon.