Bankman-Fried was due to appear in court on Tuesday, after being arrested the day before in the Bahamas. During the hearing, his attorney suggested that Bankman-Fried pay $250,000 in cash as collateral. Bankman-Fried would then be allowed to leave his cell and wear an ankle bracelet, per his advice.
But the judge believes there is no way the FTX founder could “satisfy somehow” with his situation, given the large amount of money at his disposal. He could be hiding with that, for example, the judge thought.
FTX went bankrupt because the company didn’t have enough money to pay back users’ credits. This is in part because the assets of FTX’s clients have been transferred to the Alameda investment trust, also owned by Bankman-Fried. There he got stuck in investing.
US authorities suspect Bankman-Fried of committing a total of eight crimes. In addition to the misuse of client funds at FTX for Alameda, it would also concern misleading lenders in the amount of $1.8 billion and clients on the financial health of its crypto companies. He also allegedly laundered the proceeds and violated US campaign finance laws.
A hearing on Bankman-Fried’s extradition to the United States is scheduled for February 8. His lawyer had already indicated on Tuesday that he would oppose the extradition plans.
