Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is being transferred to a new prison facility, The Wall Street Journal reported.
Federal officials started the transfer early Wednesday, according to a representative for Bankman-Fried. The spokesperson did not confirm the destination, but sources familiar with the matter believe the former executive is relocating to a prison in Mendota, California.
This move follows federal prosecutors’ recommendation several weeks ago that Bankman-Fried be moved to a low-security facility in California, closer to his parents’ home in Palo Alto. In April, Bankman-Fried said he prefers to stay at Brooklyn’s Metropolitan Detention Center (MDC), a mixed-security facility in New York, to remain close to the lawyers working on his appeal.
As of this writing, it is unclear if Bankman-Fried has already left MDC Brooklyn or reached his new facility. Bankman-Fried was first incarcerated early last year when Judge Lewis A. Kaplan of the Southern District of New York revoked his bail for witness tampering.
While the exact location of the new prison remains undisclosed, it is believed to be in California. Bankman-Fried is likely to be placed in a medium-security prison, despite the judge’s order recommending he remain in New York to facilitate access to his appellate counsel. The transfer process could take over a month, given its complexity.
In March, the former crypto mogul was sentenced to 25 years in prison and ordered to forfeit $11 billion after being convicted of seven counts of fraud, conspiracy, and money laundering. His FTX exchange, once the world’s third-largest, collapsed in November 2022 following a report by CoinDesk that revealed financial instability at its sister firm, Alameda Research.
Earlier in February, the once-billionaire founder of FTX was spotted looking quite different with a new beard and a slimmer figure in a photo that’s been making rounds, reportedly taken inside New York’s Metropolitan Detention Centre.
This snapshot was shared by crypto journalist Tiffany Fong during a chat with a former inmate known simply as “G Lock” marks the first glimpse of Bankman-Fried behind bars since his fraud conviction last August.
Captured on December 17, 2023, the image shows Bankman-Fried with a beard, appearing leaner, in the company of five other inmates.
Fong teased a clip from an upcoming interview with G Lock, who got to know Bankman-Fried during his jail time. According to Fong, Bankman-Fried has lost some pounds and hasn’t been keeping up with personal hygiene as much. “He’s definitely going through a rough patch,” Fong noted.
G Lock gave his two cents on Bankman-Fried, calling him “weird as hell” but still a “decent dude.”
