A Justice of the Peace decide within the Bahamas on Tuesday denied bail to FTX co-founder Sam Bankman-Fried, citing heightened flight threat, and stated he needs to be remanded to Bahamian custody till February 8, 2023, hours after a U.S. federal prison indictment towards Bankman-Fried alleging an enormous fraud at FTX was unsealed in New York City.
Bankman-Fried was arrested Monday night by Bahamas regulation enforcement appearing on a request from the United States Attorney for the Southern District of New York. Regulators from the Commodity Futures Trading Commission and the Securities and Exchange Commission additionally unveiled expansive allegations of fraud and deception by the onetime billionaire.
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His authorized staff is planning to struggle any extradition order, in keeping with NBC News.
Bankman-Fried was charged with a number of counts in federal court docket, together with wire fraud, securities fraud, cash laundering, and marketing campaign finance violations.
Reuters reported that Bankman-Fried lowered his head and hugged his mother and father, who’re each Stanford Law professors. They have remained by his facet all through the ascent and gorgeous collapse of one of many world’s largest crypto exchanges.
Bankman-Fried’s mother and father have been animated in the course of the continuing, at occasions laughing or placing their fingers of their ears, in keeping with CoinDesk.
FTX’s collapse was precipitated when reporting by CoinDesk revealed a extremely concentrated place in self-issued FTT cash, which Bankman-Fried’s hedge fund Alameda Research used as collateral for billions in crypto loans. Binance, a rival alternate, introduced it might promote its stake in FTT, spurring an enormous withdrawal in funds. The firm froze belongings and declared chapter days later. Charges from the SEC and CFTC indicated that FTX had commingled buyer funds with Bankman-Fried’s crypto hedge fund, Alameda Research, and that billions in buyer deposits had been misplaced alongside the best way.