Sam Bankman-Fried, who established the crypto platform FTX, has been relocated from a federal penitentiary in the heart of New York City to a novel detention facility, approximately 18 months into his quarter-century confinement. The founder was moved from the Metropolitan Detention Center located in Brooklyn on Thursday. He was sent to a transit institution situated in Oklahoma City, as informed by the Bureau of Prisons.
The institutional move comes after Bankman-Fried, the lead of FTX, had been an inmate at the Brooklyn jail since August of 2023. His legal team had made requests for him to be transferred to a federal penitentiary in California. The reason behind this preference was a desire to be located closer to his parents who reside in the vicinity of Stanford University.
The destination for Bankman-Fried following his layover in Oklahoma is yet uncertain. The Bureau of Prisons confirmed his present location at the transit point but chose not to disclose his future designation. This non-disclosure policy was due to reasons relating to privacy, safety, and security.
The shift for Bankman-Fried comes in the aftermath of his time spent in solitary confinement. At age 33, he was convicted on seven instances related to economic offenses in 2023. He was then sentenced to two and a half decades in jail, and ordered to give up his ownership of $11 billion.
Previously glorified as the ‘King of Crypto’, Bankman-Fried had his reputation and wealth rapidly deteriorate following these events. The troubles for the young billionaire crescendoed in November of 2022, when a published report revealed the non-existence of the majority of FTX’s assets.
This disclosure had a domino effect, leading the platform’s investors and clients to rush their withdrawal of funds. This frenzy exposed a shocking deficit of $8 billion within the company’s finances.
Prosecutors have labeled this incident as one of the greatest financial tales of deception in the annals of United States history. Bankman-Fried, however, maintains his innocence. He is actively contesting his conviction, appealing against it.
The mogul is of the belief that the judge presiding over his case demonstrated partiality. He asserts that the jury was pushed into rendering a verdict hastily. Thus, the efforts to challenge his conviction continue.