Diksia.com - NEW YORK, Sam Bankman-Fried, former CEO of crypto exchange FTX, is back in jail at the Metropolitan Detention Center in Brooklyn Saturday (December 8, 2023) after a federal judge pried Sam Bankman-Fried’s bail . .
In an official statement quoted by Reuters, the prosecutor explained that Bankman-Fried’s jail sentence was imposed because this crypto trader interfered with a court-appointed potential witness.
In addition, Sam has been shown to have secretly contacted several of his business partners over a virtual private network to evade surveillance.
“Bankman-Fried has secretly contacted several former business partners who have agreed to an indemnification agreement and plan to testify against him,” the federal judge said.
The FTX bankruptcy began as $1 billion of FTX crypto exchange customers’ money evaporated.
It’s not clear where the money went, but information circulating from 2019 through earlier this year said Bankman-Fried and his colleagues were conspiring to steal billions of dollars from FTX clients.
Due to this issue, FTX investors unanimously executed massive withdrawals, fearing that their digital assets might not be liquidated.
FTX crypto was recorded surging $6 billion during the 72-hour liquidation due to mass withdrawals by crypto investors.
Eventually, these problems caused FTX to enter a crisis, forcing the company to file for bankruptcy in court on November 11 last year.
Regrettably, after filing for bankruptcy in the US court, financial regulators and regulators have announced that FTX has billions of dollars in aggregate debts that have not been paid to dozens of creditors.
SBF was eventually arrested in the Bahamas in December 2022 for delinquent debts to investors and involvement in a multi-billion dollar money fraud scandal.
But the former CEO of bankrupt crypto exchange FTX was released after Sam Bankman-Fried’s parents promised a judge $250 million so their son could go out of jail awaiting trial.
Under the guise of alleviating the Bankman-Fried mental disorder Attention Deficit Disorder (ADD). The US court eventually granted Bankman-Fried’s parents’ motion.
