Sam Bankman-Fried, the creator of FTX, was accused of fraud and denied bail.

After the magistrate's judge denied bail due to a “great” danger of flight, the former FTX CEO, who was detained in the Bahamas on Monday, bowed his head and embraced his parents.

According to a local official, he was officially transferred to a prison in the island nation where he will first be housed in the medical section until February 8.

The day's events culminated in the 30-year- old's fall from grace in recent weeks. Before FTX abruptly failed this year, he had accumulated a fortune worth over $20 billion by riding the cryptocurrency bubble to develop into one of the biggest exchanges in the world.

Bankman-Fried previously expressed regret to consumers and admitted supervisory shortcomings at FTX, but he insisted that he does not believe he is directly responsible for any criminal activity.

Bail for Bankman-Fried, according to Bahamas authorities, would violate a treaty with the United States that mandates that suspects be detained while extradition procedures are ongoing. Bankman-Fried informed the judge that he would not give up the right to fight the extradition process and hinted that he would try to stay in the Bahamas.

Bankman-Fried was detained Monday night after the Royal Bahamas Police Force was informed of a secret accusation by American prosecutors. The Southern District of New York U.S. The Attorney's Office unveiled the complaint earlier on Tuesday, revealing that authorities were accusing the previous FTX CEO of wire fraud, conspiracy to launder the money, and campaign funding violations among other things.

In the charge, prosecutors claim that the erstwhile millionaire was involved in criminal activities that started in 2019 and persisted through this last month.

The accusation claims that Bankman-Fried “worked with others to defraud clients of FTX.com by misappropriating [their] deposits and utilizing [those deposits] to pay expenses and debts of Alameda Research.”

Additionally, it claims Bankman-Fried and many others planned to cheat FTX's lenders “by giving those lenders inaccurate and deceptive information on Alameda Research's financial condition.”

He is accused of conspiring with other individuals to give to candidates and parties in violation of the law while using the identities of other people to conceal and increase his political giving, according to the prosecution.

Source: REUTERS

Sam Bankman-Fried, the founder and former CEO of FTX, will be kept in detention after a Bahamas judge decided on Tuesday that bail should not be granted.

On February 8, 2023, at 10:00 a.m., Magistrate Judge Joyann Ferguson-Pratt mandated that an extradition proceeding take place. ET. Initially, Bankman-counsel Fried's requested that the judge take into account releasing him on a $250,000 bail since they said he needed to be able to routinely take medicine, such as the over-the-counter allergy medicine Zyrtec, as well as adhere to his vegetarian diet. Police had earlier that day taken Bankman-parents Fried's to his residence in Albany, Bahamas, where they had gone to pick up Adderall.

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