From $32B To Jail

From $32B To Jail

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  • A federal judge in New York ruled on Friday to return the founder of the cryptocurrency exchange "FTX" Sam Bankman-Fred to prison, saying that he violated the rules of his provisional release. The Attorney General's office had requested that the provisional release be revoked, accusing Sam Bankman-Fred of tampering with a witness. According to the prosecutor, Bankman-Fred sent documents to the New York Times in an attempt to influence the testimony of Carolyn Ellison, the former CEO of his indicted investment firm Alameda who agreed to cooperate with US authorities.
  • Bankman Fred was placed under house arrest at his parents' home in California awaiting trial after posting a $250 million bail. FTX went bankrupt in November, which led to the dissolution of the platform, which at one point had an estimated market value of $32 billion.

Why it matters

The founder of the “FTX” platform was charged with fraud and forming a criminal conspiracy, and the United States received him at the end of December 2022 from the Bahamas, where the company is headquartered. Sam Bankman-Fred has pleaded not guilty to all charges, and his trial is scheduled to begin in October in New York.


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