Reports have it that Sam Bankman-Fried (SBF) is being transferred to a new prison. The location of the new prison is undisclosed as of early Thursday, but details note it could be in California. The prison transfer comes as SBF works on an appeal to overturn charges.
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According to a spokesman for the jailed FTX founder, federal officials began the process of transferring SBF to a new prison early Wednesday. The transfer overrides his wish to stay in New York while he prepares his appeal.
SBF Is Moving to a New Prison Facility
Sources familiar with the situation suggest that Bankman-Fried is likely being transferred from the prison in Brooklyn, New York, to a federal correctional facility in Mendota, California. For the past 9 months, SBF has had an unchanged prison stay in New York.
According to the Bureau of Prisons website, Mendota houses a medium-security prison and a minimum-security satellite camp. The facility currently houses 931 inmates. This prison transfer would bring Sam closer to his parents’ residence near Stanford University. The new jail cell is approximately a two-and-a-half-hour drive away from home.
A representative for the Bureau of Prisons declined to comment on Mr. Bankman-Fried, citing “privacy, safety and security reasons.”
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In a court filing on Wednesday afternoon, Lewis A. Kaplan, the judge overseeing SBF’s case, recommended that the Bureau of Prisons keep Bankman-Fried at the Metropolitan Detention Center in Brooklyn.
SBF had earlier expressed a preference to remain at Brooklyn’s Metropolitan Detention Center (MDC), a mixed-security facility in New York. According to him, it would be easier to maintain access to the legal team working on his appeal.
Sam Bankman-Fried’s transfer was reported earlier by The Wall Street Journal.
SBF’s Road to Prison
In March 2024, Sam Bankman-Fried was sentenced to 25 years in prison for defrauding FTX’s customers, investors, and lenders. It was considered one of the largest financial frauds in U.S. history.
Bankman-Fried faced charges including two instances of wire fraud, two instances of wire fraud conspiracy, one count each of securities fraud and commodities fraud conspiracy, and one count of money laundering conspiracy.
Prosecutors said that he orchestrated a yearslong fraud, siphoning $8 billion from customer accounts. With the money he stole, SBF financed venture capital investments, made political donations, and purchased posh real estate properties.
"It was delusional. Let's be really clear. Sam was delusional about what happened and his culpability in it," says @novogratz. "He needs to be prosecuted. He will spend time in jail. And it wasn't just Sam. You don't pull this off with one person." pic.twitter.com/0SSh1r8XIL
— Squawk Box (@SquawkCNBC) December 1, 2022
After the verdict, Bankman-Fried was granted bail and confined to his parents’ house in Northern California. Judge Kaplan revoked his bail in August, arguing that he had tried to intimidate a witness. Since then, Bankman-Fried has been confined to the Metropolitan Detention Center.
What Happens to Others Implicated in the FTX Collapse?
SBF is the first person connected to FTX and Alameda Research’s historic downfall to receive a prison sentence. His comrades: Ryan Salame, Caroline Ellison, Gary Wang, and Nishad Singh, have all pleaded guilty.
Ryan Salame’s sentencing hearing is scheduled for May 28, with the rest set to follow soon.
The crypto community is wild with speculations that Bankman-Fried and Changpeng Zhao (CZ) will serve their sentences in the same prison. However, that remains doubtful.
I would like to thank everyone for your care and support, be it writing letters, showing support on X, or in any other form. They all mean a lot to me and keep me strong. I will do my time, conclude this phase and focus on the next chapter of my life (education).
— CZ 🔶 BNB (@cz_binance) May 1, 2024
I will remain a…
After Zhao’s guilty plea, a judge sentenced the former CEO to 4 months in prison. CZ will serve his prison sentence in either Washington or Oregon. At the time of this publication, no decision had been made on CZ’s reporting date.
Cryptopolitan Reporting by Florence Muchai
