Sam Bankman-Fried Returns to NYC Prison for Appeal

United States authorities have transferred Sam “SBF” Bankman-Fried, the former CEO of the cryptocurrency exchange FTX, back to the Metropolitan Detention Center (MDC) in Brooklyn after a short stay at a transfer facility in Oklahoma. As of June 4, records from the Federal Bureau of Prisons indicated that Bankman-Fried was being held at MDC Brooklyn, following approximately a week at the Federal Transfer Center in Oklahoma City.

There was significant speculation that Bankman-Fried might be moved to a prison in the San Francisco Bay Area, closer to his parents’ home in California. For reasons not publicly explained, he ended up back in New York. His legal team had pushed for his return to MDC Brooklyn, arguing it would allow them to better assist him in his appeal process against his conviction and sentencing. Supporting this request, Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York, who presided over Bankman-Fried’s trial, also recommended that he stay in New York.

In November 2023, a jury found Bankman-Fried guilty on seven felony charges related to the misappropriation of customer funds at FTX and its affiliated company, Alameda Research. By March, Judge Kaplan had handed down a 25-year prison sentence to him. Bankman-Fried’s legal representatives filed a notice of appeal on April 11, but as of the publication time, there have been no filings clarifying the grounds of his appeal.

Bankman-Fried stood almost alone in pleading not guilty in the aftermath of FTX’s collapse and opting for a jury trial. On May 28, Judge Kaplan sentenced Ryan Salame, the former co-CEO of The Bahamas-based FTX Digital Markets, to 90 months in prison. Other former executives, including Caroline Ellison, Gary Wang, and Nishad Singh, have all pleaded guilty and are currently awaiting their sentencing.

Ryan Salame, following his sentencing, made a reappearance on social media, particularly on the platform X, for the first time since November 2022. He hinted at writing a comprehensive memoir about his experiences at FTX and Alameda. Conversely, Bankman-Fried has been largely silent since January 2023, not utilizing social media and seldom engaging with the press during his trial.

In another noteworthy case, former Binance CEO Changpeng Zhao began serving his four-month sentence at the Federal Correctional Institution in Lompoc, California, for violating U.S. money laundering laws. Zhao mentioned plans to write something during his incarceration, which is expected to end by October 2024.

Looking forward, Alex Mashinsky, former CEO of Celsius, is the next significant figure within the crypto industry gearing up to face criminal charges. His trial is scheduled to commence in January 2025, following the notable legal battles of Bankman-Fried and Zhao.