The creator of the now-defunct cryptocurrency exchange FTX, Sam Bankman-Fried, made an appearance in court in the Bahamas on Monday. He was detained to the Fox Hill prison in the Caribbean country after being denied bail. The 30-year-old cryptocurrency tycoon increased his wealth multiple times by riding the rise in the value of Bitcoin and other digital assets. Ex-Bruno Bankman-Fried will be returned from the Bahamas to the United States for extradition. He poses a flight risk, therefore prosecutors will likely argue that he should be held in jail. One of the “largest financial frauds in American history,” according to the prosecutor, was the bankruptcy of FTX.
Bankman-Fried, a former CEO of FTX, is in court seeking to have his extradition revoked. He would have two days to appear before a judge in Manhattan after being extradited to the United States. He would probably be detained in Brooklyn’s Metropolitan Detention Center. The Fox Hill Correctional Facility’s circumstances were labeled as “severe” in a report by the U.S. State Department. After Chief Magistrate JoyAnn Ferguson-Pratt denied Bankman-request Fried’s to stay at home while awaiting a hearing on his extradition, he had been sent to prison on Tuesday.
In the United States, judges very seldom refuse bail to defendants charged with non-violent financial crimes, despite the fact that they frequently demand hefty bond amounts and onerous monitoring requirements.
Bail was given before trials to a number of well-known defendants, including Ponzi schemer Bernard Madoff, Theranos founder Elizabeth Holmes, and Enron executives Jeffrey Skilling and Kenneth Lay.