Sam Bankman-Fried has denied bail in the Bahamas on FTX fraud charges

A Bahamas magistrate judge on Tuesday denied bail to FTX co-founder Sam Bankman-Fried, citing increased flight risks, and said he should be remanded in the Bahamas until February 8, 2023, hours after a US federal criminal indictment against Bankman was issued. Fried has been exposed as an allegation of a massive scam at FTX in New York City.

It was Bankman Fried He was arrested on Monday evening By law enforcement in the Bahamas at the request of the United States Attorney for the Southern District of New York. Regulators from the CFTC and the Securities and Exchange Commission also uncovered widespread allegations of fraud and deception by the former billionaire.

His legal team plans to fight any extradition order, according to NBC News.

Bankman-Fried has been charged with several counts in federal court, including wire fraud, securities fraud, money laundering, and campaign finance violations.

Reuters reported that Bankman-Fried lowered his head and hugged his parents, who are both law professors at Stanford University. They have been by his side throughout the incredible rise and fall of one of the largest cryptocurrency exchanges in the world.

Bankman-Fried’s parents were very lively during the procedure, at times laughing or putting their fingers in their ears, according to CoinDesk.

FTX collapse was accelerated when Reporting via CoinDesk It revealed a highly concentrated position in self-issuing FTT coins, which Bankman Fried hedge fund Alameda Research has used as collateral for billions in crypto loans. Binance, a rival exchange, announced that it would sell its stake in FTT, spurring massive cash withdrawals. The company froze its assets and declared bankruptcy days later. Charges from the CFTC indicated that FTX had mixed customer funds with Bankman-Fried’s crypto hedge fund, Alameda Research, and that billions in customer deposits had been lost along the way.