FTX Founder to Spend Christmas in Jail, Parole Denied

On December 13, 2022, one day after being held in the Bahamas at the request of the United States, FTX founder Sam Bankman-Fried, also known as SBF, was denied parole by Bahamian officials.

According to Reuters, a Bahamian judge, JoyAnn Ferguson-Pratt, dismissed a parole plea for Sam Bankman-Fried because of the “great” risk that he would become a fugitive.

Magistrate Ferguson-Pratt ordered SBF, now an inmate number 1472, to spend Christmas in a Bahamian prison. Additionally, SBF will remain imprisoned at least until February 8, 2023. Notably, on February 8, 2023, he will have a hearing regarding his extradition.

SBF is subject to a 115-year maximum sentence. According to Reuters, the case is so broad that its outcome may shift if new evidence were to emerge against the defendant.

SBF defence attorney, Mark S. Cohen said: 

“Mr. Bankman-Fried is reviewing the charges with his legal team and considering all of his legal options.”

U.S. Attorney General Merrick Garland claimed that SBF had plotted to steal money from FTX clients. In his opinion: 

“We allege that the defendant conspired to defraud customers by misappropriating their deposits; to defraud lenders; to commit securities fraud and money laundering; and to violate campaign finance laws.”

FTX Founder Donated Stolen Money to Political Campaigns

U.S. Attorney for the Southern District of New York Damian Williams claimed that “tens of millions of dollars in illegal campaign contributions” were made by Sam Bankman-Fried to both Democratic and Republican lawmakers using “money stolen from clients.”

U.S. Representative for Texas’s 9th district, Alexander N. Green, testified during the hearing that several people were affected by SBF, and that Congress must “send a message” to anyone who would damage others that the United States will not allow such behaviour. 

He continued by saying he has a hard time believing they are dealing with “unknowing stupidity,” and he criticised the various interviews and media appearances SBF had given to convey the message that he was not scamming people but was instead a bad manager.