The disgraced CEO of FTX is finally facing the consequences of his actions that led to one of the most significant market crashes in crypto history.
After being arrested by the Royal Police of the Bahamas, SBF is now waiting for an extradition hearing scheduled for February. His legal team attempted to convince the Bahamian judge to allow Bankman-Fried to wait for his trial out of custody.
His lawyers claimed that the former CEO should be provided bail, due to his extensive list of medications, and so that SBF can maintain his vegan diet.
The attorneys proposed a $250,000 bail in order to allow Bankman-Fried to wait for his trial freely.
Bankman-Fried is charged with several accounts of fraud that could end up costing him years in prison. So far, SBF has been charged with:
- Conspiracy to commit wire fraud on customers
- Wire fraud on customers
- And conspiracy to defraud the United States and violate Campaign Finance Laws.
- Conspiracy to commit wire fraud on lenders
- Wire fraud on lenders
- Conspiracy to commit commodities fraud
- Conspiracy to commit securities fraud
- Conspiracy to commit money laundering
About The Potential For Sam Bankman-Fried To Flee the Bahamas
During the hearing, prosecutors claimed that the former billionaire proposed a high risk of fleeing the nation. They also claimed that granting bail to Bankman-Fried would violate a treaty with the United States that requires prisoners to be detained until extradition procedures.
The defense attorney claimed that his client already possesses several real states in the Bahamas and that by no means he proposed a threat of fleeing the country. SBF’s lawyer also argued that if he were to run, he would have done it weeks ago when he still had possession of his passport.
Meanwhile, the accusing party claimed that the ownership of the real state was not a sufficient reason for bailing out the former billionaire. The logic is that, if SBF is found guilty of fraud, a good part of his patrimony could be clawed back, in order to repay those affected by FTX’s collapse.
The Bahamian judge Ferguson-Pratt did not give in. The judge argued in a joking manner with the defense, claiming that “with the number of bail violations that come before me, you would understand”, alluding to the risk of SBF fleeing.
SBF Denied Bail
Ultimately, the magistrate judge leaned towards the prosecution’s arguments and denied the bail proposed by SBF’s lawyers.
This means that Bankman-Fried will spend the holidays behind bars. The scheduled U.S. extradition hearing will only happen two months from now, on February 8.
His lawyers claimed that they will appeal for another bail hearing, but so far it is unlikely to believe that the outcome will change.