Federal prosecutors requested on Wednesday that Sam Bankman-Fried, the creator of the failing FTX crypto firm, be imprisoned before his October trial.
During a hearing in federal court in Manhattan, Prosecutor Danielle Sassoon vehemently argued that if Bankman-Fried was released on bond, the community’s safety could not be guaranteed. Lawyers believe that his immediate custody is necessary given the seriousness of the accusations against him and the possibility for witness manipulation.
Separately, US authorities are anticipated to dismiss an accusation against Bankman-Fried that he plotted to make illegal political donations. This choice was made as a result of The Bahamas’ reluctance to extradite Bankman-Fried for this particular offense.
A total of 300 political candidates or political action organizations were allegedly the recipients of nearly $90 million in campaign contributions made by Bankman-Fried and other FTX executives utilizing client deposits. Many of those other executives have already entered guilty pleas for their involvement in the crimes involving campaign money and are aiding the government in its prosecution of Bankman-Fried, according to reports.
Bankman-Fried’s cryptocurrency empire, which was based on his FTX trading exchange and sister hedge fund Alameda Research, crumbled almost nine months ago, costing billions of dollars in stolen customer assets.
Although none of the exchange’s clients or consumers have yet been completely compensated, almost $7 billion in losses have so far been recovered.
