Former FTX CEO Sam “SBF” Bankman-Fried, recently sentenced to 25 years in federal prison, has requested to remain incarcerated in the New York City area instead of California. In an April 8 filing, Bankman-Fried’s lawyers asked Judge Lewis Kaplan to allow the former cryptocurrency executive to stay at the Metropolitan Detention Center in Brooklyn, where he has been since August 2023.
According to the legal team, SBF wanted to stay at the Brooklyn prison to “facilitate access to his appellate counsel” as part of his expected appeal of his conviction and sentencing. Judge Kaplan had previously stated at a March 28 sentencing hearing that the former FTX CEO would serve his time at a medium—or low-security prison in the San Francisco Bay Area.
What Led to Sam Bankman-Fried’s Arrest?
Sam Bankman-Fried’s legal troubles stem from the collapse of FTX, one of the world’s largest cryptocurrency exchanges. Once a celebrated figure in the crypto world, Bankman-Fried and several high-level FTX associates were charged with multiple counts of fraud and conspiracy.
Prosecutors allege that Bankman-Fried misappropriated billions of dollars in customer deposits from FTX to fuel risky trading bets through Alameda Research, a hedge fund he also controlled. Ultimately, FTX filed for bankruptcy in November 2022, leaving customers unable to access their funds.
Other FTX Associates Plead Guilty
In their April 8 filing, Bankman-Fried’s lawyers cited Rule 38(b)(2) of the Federal Rules of Criminal Procedure. This rule permits courts to recommend confining a defendant near the trial or appeal location to aid in appeal preparation. As far as Sam Bankman-Fried’s appeal requests to remain in a Brooklyn jail, the government has informed Bankman-Fried’s legal team that they take no position on the request.
Several of Sam Bankman-Fried’s co-workers have already pleaded guilty in the FTX case. Caroline Ellison, Gary Wang, Nishad Singh, and Ryan Salame admitted to various charges and agreed to cooperate with prosecutors.
Salame, a former FTX executive, pleaded guilty last September and is due for sentencing on May 28.
