FTX cryptocurrency exchange founder Sam Bankman-Fried is facing difficulties in jail as he awaits his fraud trial. Bankman-Fried’s lawyer, Mark Cohen, stated that his client is “subsisting on bread and water” because the federal jail has not provided him with a vegan diet as requested. Cohen also mentioned that the lack of adequate food and medication at the Metropolitan Detention Center in Brooklyn is hindering Bankman-Fried’s ability to prepare for his trial, scheduled for October.
Bankman-Fried, 31, pleaded not guilty to seven criminal charges contained in a new indictment during a hearing before U.S. Magistrate Judge Sarah Netburn. This was his first appearance since his bail was revoked on August 11 by U.S. District Judge Lewis Kaplan, who found that Bankman-Fried had tampered with witnesses.
The new indictment, returned on August 14, accuses Bankman-Fried of seven counts of fraud and conspiracy related to the collapse of FTX in November 2022. Prosecutors allege that he stole billions of dollars in FTX customer funds to cover losses at his hedge fund, Alameda Research. Bankman-Fried has admitted to inadequate risk management at FTX but denies stealing customer funds.
The indictment no longer includes charges of conspiring to violate U.S. campaign finance laws. Prosecutors explained that the Bahamas, which extradited Bankman-Fried to the United States in December 2022, objected to him being tried on that count. However, prosecutors still intend to show that the $100 million Bankman-Fried allegedly donated to U.S. political campaigns and causes was part of his wider-ranging fraud scheme.
During the hearing, Bankman-Fried’s lawyers raised concerns about the jail’s failure to provide him with the medication Adderall to treat attention deficit hyperactive disorder, despite a court order to do so. They also mentioned the lack of vegan food, which they argued would hinder his ability to participate in preparing his defense case. Cohen stated that Bankman-Fried is “literally now subsisting on bread and water” because he is following his principles.
U.S. District Judge Lewis Kaplan, who will oversee Bankman-Fried’s trial, ordered the jail on August 14 to provide the defendant with the necessary medication. Judge Netburn said she would ask the U.S. Justice Department’s Bureau of Prisons to address the issues with Bankman-Fried’s medication and food. While the facility is known for its ”inhumane” conditions, it is unclear if vegan food is available.
The Bureau of Prisons released a statement asserting that MDC inmates have access to appropriate healthcare, medicine, and hot meals. They stated that the facility provides nutritionally adequate meals following the requirements of a national menu that is analyzed yearly to meet all dietary requirements.
Bankman-Fried was jailed after sharing the personal writings of his former romantic partner and colleague, Caroline Ellison, with a New York Times reporter. Ellison, who was the chief executive of Alameda, is one of three former members of Bankman-Fried’s inner circle who have pleaded guilty and agreed to testify against him at trial.
The trial will be closely watched as the cryptocurrency industry continues to face scrutiny and regulation. Bankman-Fried’s case highlights the potential risks and challenges associated with cryptocurrency exchanges and the need for proper risk management and customer protection measures.
How could the lack of proper medication and a vegan diet impact Bankman-Fried’s ability to adequately prepare for his trial
Aud scheme.
Bankman-Fried, who is worth an estimated $16.2 billion, was arrested in Miami in December 2022, following an investigation by the U.S. Department of Justice and the FBI. He was extradited to the United States from the Bahamas to face charges related to the collapse of his cryptocurrency exchange, FTX.
Since his arrest, Bankman-Fried has been held at the Metropolitan Detention Center in Brooklyn. His lawyer, Mark Cohen, has raised concerns about his client’s treatment while in jail. In addition to the lack of a vegan diet, Cohen also mentioned the lack of proper medication for Bankman-Fried’s health conditions.
Cohen argued that these conditions have made it difficult for Bankman-Fried to adequately prepare for his trial, which is scheduled to begin in October. He stated that his client’s ability to review evidence and assist in his defense has been severely hindered by the inadequate conditions in jail.
Bankman-Fried, who founded FTX in 2017, is facing charges of fraud and conspiracy related to the collapse of the cryptocurrency exchange. Prosecutors allege that he stole billions of dollars in customer funds to cover losses at his hedge fund, Alameda Research. Bankman-Fried has admitted to inadequate risk management at FTX but denies stealing customer funds.
While the new indictment no longer includes charges of conspiring to violate U.S. campaign finance laws, prosecutors still intend to demonstrate that Bankman-Fried’s alleged donations to political campaigns were part of a wider fraud scheme.
As Bankman-Fried awaits his trial, his lawyer continues to advocate for better conditions in jail, including a vegan diet and proper medication. It remains to be seen how these issues will be addressed and how they may impact Bankman-Fried’s ability to defend himself in court.
Hope he gets the nutrients he needs. Justice will be served one way or another.
Samuel: It’s important to remember that everyone is innocent until proven guilty. We’ll see how the trial unfolds.
Emily: It’s concerning to hear about his diet, but it’s essential to ensure a fair trial for all.