Disgraced FTX Founder Sam Bankman-Fried is Being Transferred to California Prison

2024-05-22 22:04:19

Hongji Feng

Last updated:

May 23, 2024 02:04 EDT | 1 min read

FTX Founder Sam Bankman-Fried Begins Transfer to New Prison Federal officials are transfering former FTX CEO Sam Bankman-Fried to a new prison in California.

According to a recent report by The Wall Street Journal, Bankman-Fried’s spokesperson confirmed the move but did not provide the specific destination. People familiar with the matter stated that Bankman-Fried would likely be moved to a federal correctional facility in Mendota, California.

Bankman-Fried to Move to New Prison

Shortly after the transfer process began, the judge who presided over Bankman-Fried’s trial issued an order recommending that the Federal Bureau of Prisons keep him detained in New York “to facilitate access to appellate counsel.”

This recommendation from U.S. District Judge Lewis Kaplan followed a request filed by Bankman-Fried’s lawyers over six weeks ago. It remains uncertain whether the judge’s order will halt the transfer process to the new prison.

“We appreciate the court’s consideration and hope the BOP will follow its recommendation,” said the spokesman.

The report indicated that due to his lengthy sentence, Bankman-Fried is likely to be placed in a medium-security prison under federal guidelines, though it remains unclear which facility will house him.

According to Michael Santos, founder of Prison Professors, the transfer process could take a month or more because of its slow-moving nature.

In March 2024, Judge Kaplan sentenced Bankman-Fried 25 years in prison and an $11.02 billion fine in Manhattan federal courthouse. Kaplan described Bankman-Fried’s defense as “misleading, logically flawed, and speculative,” stating he had never seen a “performance” like his testimony.

Former FTX utive May Face 7-Year Imprisonment

The prosecutors are seeking a prison sentence of five to seven years for the former FTX utive Ryan Salame.

In a sentencing memorandum, attorneys from the Southern District of New York argued for an extended prison term, citing the severity of the crimes and the need for general deterrence in sentencing.

Salame’s lawyers submitted a memo on May 14, requesting a prison term of no more than 18 months, arguing that Salame wasn’t central to the fraud and lost much of his fortune with FTX’s collapse.

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