- The convicted FTX founder Sam Bankman-Fried is currently awaiting his final sentence.
- SBF has quickly adapted to life behind bars.
- The former CEO has devised new trading means beyond cryptocurrencies.
The downfall of the former crypto mogul and FTX founder, Sam Bankman-Fried (SBF), which resulted in a substantial $8 billion loss for investors, remains one of the most controversial chapters in crypto history. On November 2, SBF was convicted in one of the largest financial fraud cases by the U.S. Department of Justice (DOJ), on several criminal charges including wire fraud and user funds misappropriation.
While he awaits a sentence, the disgraced CEO has remained in confinement, swiftly acclimating to the peculiarities of his new reality.
SBF’s Jail Life and Mackerel Maneuvers
A November 23 report by the Wall Street Journal has provided a glimpse into the current living conditions of Sam Bankman-Fried, and how he has seemingly adapted to the fundamentals of life behind bars.
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Presently held in the New York Metropolitan Detention Center, SBF shares a cell with two other high-profile offenders, including a Mexican ex-secretary of public security, who was convicted of smuggling over 50 kilos of cocaine into the U.S., Genaro García Luna, and Juan Orlando Hernández, the former president of Honduras awaiting trial for firearms and narcotics trafficking charges.
In terms of trade, SBF’s commitment to a plant-based diet seems to be paying off. The 31-year-old has quickly crafted alternative means of trade beyond crypto assets, swapping packaged mackerel fish, colloquially known as “macks” in prison language, for services like haircuts.
SBF’s confinement comes with restrictions. With no access to the internet, the former CEO is only allowed one day a week to access a computer for legal document review and is strictly restricted to non-legal visitors.
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The FTX founder is also sharing crypto tips with other inmates and prison guards, a somewhat ironic twist given that he is now dispensing the insights that led to his own downfall.
The Fall of Sam Bankman-Fried
On November 11, 2022, the once-acclaimed cryptocurrency exchange FTX, founded by SBF, filed for Chapter 11 bankruptcy, along with other entities including Alameda Research, and FTX US. In the aftermath, the U.S. Department of Justice commenced legal proceedings to unravel the events preceding the collapse.
Following months of investigation, Bankman-Fried was indicted on a 12-count charge, including wire and investor fraud, conspiracy to commit money laundering, and customer fund theft.
After a 15-day trial period, the FTX founder was declared guilty of seven changes. His final sentencing is scheduled for March 28, 2024, by Judge Lewis Kaplan in the New York District Court.
On the Flipside
- Sam Bankman-Fried was formerly hailed as a philanthropist and crypto hero until revelations of his illicit activities came to light.
- FTX remains indebted with over $8 billion worth of assets owed to an extensive list of creditors.
- SBF faces a potential jail sentence of 20-155 years.
Why this Matters
The revelations of SBF’s confinement, from unconventional trade practices to freedom restriction exemplify the potential consequences that befall even high-profile figures in the wake of financial misconduct.
Read more on the reaffirmed commitment of U.S regulators to sanction more crypto offenders:
Prosecutors Bolster Crime Crackdown Post-SBF Guilty Verdict
Binance is the latest to come under the DOJ’s fire as the exchange and CEO CZ plead guilty to several criminal charges. Read more:
DOJ Charges Binance, Mandates Binance Exit, CZ Pleads Guilty
