The FTX founder has made a new request to the court to release him on bail. Under what conditions is Bankman-Fried being held?
Former FTX executive Sam Bankman-Fried, recently arrested in the Bahamas, has made a fresh application to the court asking for bail. However, just a couple of days ago the judge in charge of the FTX bankruptcy case had already refused Sam a similar request. The defendant is now in the Bahamas’ Fox Hill prison, which is known for its harsh conditions for prisoners. If another bail request is not granted by the judge, Sam will remain behind bars until at least February, i.e. until the next court hearing.
It should be noted that after Sam Bankman-Fried was placed in custody, new details of his case have come to light. In particular, a whistleblower who told the authorities about the FTX cryptocurrency exchange’s illegal activity, which included mixing the platform’s users’ funds with other money, was revealed.
He turned out to be Ryan Salame, co-CEO of FTX Digital Markets. According to sources, he approached the Bahamas Securities Commission back on November ninth, which is almost immediately after FTX filed for bankruptcy.
FTX Digital Markets board member Ryan Salame
There are also reports that Caroline Allison, who was an executive at trading company Alameda Research, may also be cooperating with law enforcement agencies. It appears that through cooperation with the authorities they may be trying to improve their future fate.
What kind of prison is Sam Bunkman-Fried in?
According to sources of Cointelegraph, Bankman-Fried’s attorneys filed a petition for the release of their client on bail of $250,000 on December 13. They noted that Sam has no criminal history and that he himself suffers from depression and insomnia. In any case, the lawyers’ arguments did not impress the judge – the petition was rejected because of fears that Bankman-Fried might go on the run.
Ex-CEO of FTX Sam Bunkman-Fried
Sam's lawyers' application is due to be heard by the court on 17 January, which is as early as next year. It is possible that Bachman-Fried could be extradited to the US, as Bahamian law provides for such a possibility. Well, US regulators have their own plans for Sam. It will be recalled that he is facing charges from both the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Despite initial setbacks in his trial, “Sam Bankman-Fried remains in good health and cheerful spirits,” was the statement made the day before by Acting Commissioner of Corrections of the Bahamas, Doane Clear. However, immediately following his arrest, the former FTX CEO was remanded to the country’s only prison, Fox Hill Correctional Facility.
Dawn Clear in Fox Hill Prison
Since being admitted, Sam has remained in the prison’s infirmary for the time being, where he is being assessed for health and risk of self-harm. The results of the doctors’ assessment – which usually takes up to two days – determine which wing the prisoner will be transferred to. Bankman-Fried is in the infirmary with five other prisoners. Clear noted that even despite the former billionaire’s status, the prison administration will not treat Sam with special privileges.
If the prison authorities decide that Bunkman-Fried is either endangered by other inmates or is a special danger himself, he could be sent to the high-security wing. If he is found to have “dangerous health problems”, he may remain in the infirmary. In all other cases he will be placed in a regular cell with the main population of other prisoners.
Sam’s place of detention is considered to be one of the worst in the context of the treatment of prisoners. A 2021 US State Department report states that Fox Hill has “significant human rights problems”. The prison is overcrowded and food and sanitation conditions fall short of the required standards. There are no mattresses or toilets in most prison cells. Prisoners often sleep on the ground and use buckets for their own waste. Fox Hill is also full of rats and insects.
That said, as Clear noted the day before, "the prison is no longer infested with rodents." Accordingly, in theory, the current conditions at the prison could be better, although it is difficult to believe the drastic change.
Fox Hill Prison
During his first court hearing, Sam refused to assert his right to fight extradition to the US. Because of this, he could remain behind bars at Fox Hill for months or even years. However, even if Bachmann-Fried was transferred to one of the US prisons in the New York county where the centre of the investigation against the former FTX chief is located, it is unlikely he would receive much better conditions there.
It appears that the founder of cryptocurrency exchange FTX and trading company Alameda Research will be spending the New Year behind bars. In the meantime, prosecutors will have to connect all the facts and determine the extent of the crimes Sam Bunkman-Fried may have committed. Judging by the number of charges, the former billionaire is looking at a lot of time.
Let’s hope the court can get justice for Sam. Stay tuned for more developments on our millionaire cryptochat. There we will discuss other important developments in the world of blockchain and decentralisation.
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