Sam Bankman-Fried Reapplies for Bail After Denial

According to Reuters on Friday, which cited a source familiar with the situation, Bankman-Fried, the former CEO of the FTX exchange, which ultimately collapsed, applied for bail before The Bahamas Supreme Court. The application was made on Thursday, according to this source.

Additionally, Bahamas' Eyewitness News also reported on this information on Thursday, claiming that the Supreme Court would hear the bail request on January 17 but failing to provide any sources.

Fred Mitchell, the minister of foreign affairs, was quoted by the news source as saying,

"The FTX issue was a business failure and the jurisdiction where the failure took place has nothing to do with the actual alleged crimes, [and] that businesses in The Bahamas will survive despite the situation."

On Tuesday, a judge turned down Bankman-Fried's request for bail two days prior, prompting the new application.

As a result, the disgraced founder is currently detained in the Bahamas until February 8 while he waits for a hearing to determine whether he should be extradited to the United States. This is because Chief Magistrate JoyAnn Ferguson-Pratt turned down the founder's earlier request to stay at his home.

Given the reported condition of the jail where he is being held, it is unlikely to be a pleasant experience. A 2021 report from the US State Department called the circumstances at Fox Hill “harsh.” Rodents share the living space; there are too few toilets and many people. Doan Cleare, the correctional service's commissioner, asserted that since then, most facilities had undergone renovations, and conditions have improved.

After being officially accused of financial crimes by US prosecutors, Bankman-Fried was detained in the Bahamas on December 12. The US Attorney for the Southern District of New York indicted him on eight criminal counts, including conspiracy to commit wire fraud and misappropriation of customer funds. He could spend up to 115 years behind bars if found guilty on all counts. Separately, Bankman-Fried was accused of

“orchestrating a scheme to defraud equity investors in FTX” by the US Securities and Exchange Commission. According to John Ray III, the new CEO of FTX, the organization has “secured more than $1 billion of digital assets to protect against the risk of theft or unauthorized transfers.”

Friday morning at 10:30 UTC, the native FTT coin of FTX was trading at $1.31, down 3.3% from the previous day and 4.1% from the last week. It fell 30% in a month and 97% in a year.