Sam Bankman-Fried denied bail in Bahamas on FTX fraud charges, judge cites flight risk

A magistrate justice successful the Bahamas connected Tuesday denied bail to FTX co-founder Sam Bankman-Fried, citing heightened formation risk, and said helium should beryllium remanded to Bahamian custody until February 8, 2023, hours aft a U.S. national transgression indictment against Bankman-Fried alleging a monolithic fraud astatine FTX was unsealed successful New York City.

Bankman-Fried was arrested Monday evening by Bahamas instrumentality enforcement acting connected a petition 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 besides unveiled expansive allegations of fraud and deception by the onetime billionaire.

His ineligible squad is readying to combat immoderate extradition order, according to NBC News.

Bankman-Fried was charged with respective counts successful national court, including ligament fraud, securities fraud, wealth laundering, and run concern violations.

Reuters reported that Bankman-Fried lowered his caput and hugged his parents, who are some Stanford Law professors. They person remained by his broadside passim the ascent and stunning illness of 1 of the world's largest crypto exchanges.

Bankman-Fried's parents were animated during the proceeding, astatine times laughing oregon putting their fingers successful their ears, according to CoinDesk.

FTX's illness was precipitated when reporting by CoinDesk revealed a highly concentrated presumption successful self-issued FTT coins, which Bankman-Fried's hedge money Alameda Research utilized arsenic collateral for billions successful crypto loans. Binance, a rival exchange, announced it would merchantability its involvement successful FTT, spurring a monolithic withdrawal successful funds. The institution froze assets and declared bankruptcy days later. Charges from the SEC and CFTC indicated that FTX had commingled lawsuit funds with Bankman-Fried's crypto hedge fund, Alameda Research, and that billions successful lawsuit deposits had been mislaid on the way.