Things aren’t looking good for Sam Bankman-Fried as Christmas approaches. What’s there to be enthusiastic about when spending the Christmas season behind bars is suddenly a reality?
Bankman-Fried, the founder of the now-defunct cryptocurrency exchange FTX, was arrested in The Bahamas on Tuesday, according to Bitcoinist. The Bahamas government refused him the choice of temporary release one day after he was apprehended.
Bankman-attorney Fried’s requested that his client be released in exchange for $250,000 in cash. According to many news outlets, Chief Magistrate Joyann Ferguson-Pratt indicated that releasing SBF poses a considerable flight risk.
This comes after US senators accused SBF of misappropriating billions of dollars and breaching campaign regulations in what has been described as one of America’s greatest financial scandals.
According to Reuters, the former CEO of the failed cryptocurrency exchange was dressed in a blue suit without a tie, bent his head, and embraced his parents as the court announced its ruling.
Bail is a kind of limited release from detention obtained by an accused by paying a court-ordered amount known as a bail bond.
Based on the breadth and severity of the charges against the defendant, the court will assess if the defendant is eligible for bail and how much their bond should be.
The bond amount is intended to encourage the accused to attend all court appearances. If defendants are unable to pay their bail, a bond company may aid them financially.
Bankman-Fried amassed a fortune worth more than $20 billion by capitalizing on the cryptocurrency boom to build FTX into one of the world’s largest exchanges until it abruptly shut down this year. The events of the day capped off a spectacular fall from grace in recent weeks.
In the United States, FTX declared bankruptcy last month, preventing many customers from withdrawing payments. According to court filings, FTX owes almost $3 billion to its 50 biggest creditors.
Among the most damaging allegations leveled against Bankman-Fried is that he used client funds to prop up his investment trading firm, Alameda Research.
SBF is now facing a 115-year jail sentence. According to Reuters, the gravity of the case is so great that it might worsen if fresh evidence against the defendant surfaces.
“Mr. Bankman-Fried is presently examining the accusations with his legal team and considering all of his legal possibilities,” said Mark S. Cohen, one of SBF’s defense lawyers.
Bankman-Fried and his lawyers have indicated that they will fight his extradition to the United States. His extradition hearing is set for February 8, 2023.
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