Sam Bankman-Fried reportedly in talks with prosecutors over bail deal
FTX founder's lawyers are in talks on a deal that could allow him to be released on bail when extradited to the United States for fraud. According to three people familiar with the matter.
The terms of the deal remain fluid, the people said, and any deal would require federal judge approval overseeing Mr. Bankman - The Fried Affair. But under the terms that were discussed, the founder of collapsed cryptocurrency exchange FTX could be released on bail with very restrictive conditions, including house arrest, two of the people said. One person said electronic monitoring was also under discussion. It was unclear what further action might be needed.
Prosecutors for the Southern District of New York charged Mr. Bankman-Fried, 30, with fraud, accusing him of orchestrating a year-long scheme that resulted in the bankruptcy of FTX. The company was based in the Bahamas, and Mr. Bankman-Fried is currently imprisoned there pending extradition to the United States.
A spokesperson for the Southern District of New York declined to comment on any bail discussions. Mark Cohen, an attorney for Mr. Bankman-Fried in New York, did not respond to a request for comment.
The charges against Mr. Bankman-Fried came at the end of a saga in which one of the world's most powerful crypto billionaires rose from a titan of the industry to an accused fraudster and saw his fortunes vanish. Prior to the collapse of FTX, Mr. Bankman-Fried was a frequent presence in the halls of Congress, where he pushed legislation aimed at making the United States more friendly to the crypto industry. The fall of FTX gave the crypto industry a black eye and it is already cited as a cautionary case study.
Mr. Bankman-Fried's extradition to the United States is scheduled to take place on Wednesday. He has already been suspended once this week after a chaotic hearing in the Bahamas, where a local lawyer representing him questioned his client's acceptance of extradition. The lawyer, Jerone Roberts, later recanted, paving the way for Mr. Bankman-Fried's transfer to New York.
Mr. Bankman-Fried has been denied bail in the Bahamas after he was arrested last week at his luxury apartment complex on the island of New Providence. At a December 13 hearing, a Bahamian judge said Mr. Bankman-Fried's financial resources made him a flight risk.
Once Arrived in the United States, Mr. Bankman-Fried must be tried in the federal court for the District of Manhattan, where his case is supervised by judge Ronnie Abrams. Authorities have accused him of embezzling billions in FTX deposits and, in the process, defrauding clients, investors and lenders.
Mr. Bankman-Fried would not be the first defendant of extreme wealth to be prosecuted in the Southern District Courthouse, nor the first to attempt to negotiate a way to avoid being imprisoned while awaiting trial. Some have succeeded; others were not.
Bernard L. Madoff, the famous Ponzi scheme...
FTX founder's lawyers are in talks on a deal that could allow him to be released on bail when extradited to the United States for fraud. According to three people familiar with the matter.
The terms of the deal remain fluid, the people said, and any deal would require federal judge approval overseeing Mr. Bankman - The Fried Affair. But under the terms that were discussed, the founder of collapsed cryptocurrency exchange FTX could be released on bail with very restrictive conditions, including house arrest, two of the people said. One person said electronic monitoring was also under discussion. It was unclear what further action might be needed.
Prosecutors for the Southern District of New York charged Mr. Bankman-Fried, 30, with fraud, accusing him of orchestrating a year-long scheme that resulted in the bankruptcy of FTX. The company was based in the Bahamas, and Mr. Bankman-Fried is currently imprisoned there pending extradition to the United States.
A spokesperson for the Southern District of New York declined to comment on any bail discussions. Mark Cohen, an attorney for Mr. Bankman-Fried in New York, did not respond to a request for comment.
The charges against Mr. Bankman-Fried came at the end of a saga in which one of the world's most powerful crypto billionaires rose from a titan of the industry to an accused fraudster and saw his fortunes vanish. Prior to the collapse of FTX, Mr. Bankman-Fried was a frequent presence in the halls of Congress, where he pushed legislation aimed at making the United States more friendly to the crypto industry. The fall of FTX gave the crypto industry a black eye and it is already cited as a cautionary case study.
Mr. Bankman-Fried's extradition to the United States is scheduled to take place on Wednesday. He has already been suspended once this week after a chaotic hearing in the Bahamas, where a local lawyer representing him questioned his client's acceptance of extradition. The lawyer, Jerone Roberts, later recanted, paving the way for Mr. Bankman-Fried's transfer to New York.
Mr. Bankman-Fried has been denied bail in the Bahamas after he was arrested last week at his luxury apartment complex on the island of New Providence. At a December 13 hearing, a Bahamian judge said Mr. Bankman-Fried's financial resources made him a flight risk.
Once Arrived in the United States, Mr. Bankman-Fried must be tried in the federal court for the District of Manhattan, where his case is supervised by judge Ronnie Abrams. Authorities have accused him of embezzling billions in FTX deposits and, in the process, defrauding clients, investors and lenders.
Mr. Bankman-Fried would not be the first defendant of extreme wealth to be prosecuted in the Southern District Courthouse, nor the first to attempt to negotiate a way to avoid being imprisoned while awaiting trial. Some have succeeded; others were not.
Bernard L. Madoff, the famous Ponzi scheme...
What's Your Reaction?
