FTX’s Sam Bankman-Fried has been denied bail in the Bahamas.
The disgraced crypto boss was not given bail by a judge on the Caribbean island after he was charged with "one of the biggest financial frauds in US history" on Tuesday (13.12.12).
Gary Gensler, the chair of the Securities and Exchange Committee says the 30-year-old founder created "house of cards on a foundation of deception.”
JoyAnn Ferguson-Pratt, the Bahamas Chief Magistrate denied releasing hm on bail, deeming him having a “great” risk of fleeing and ruled he be maintained on remand at a correctional facility until 8 February.
In November, FTX filed for bankruptcy in the United States - where Sam has hinted he will fix efforts to extradite him to - blocking people involved in the fund to withdraw their assets. According to court documents, they owe their 50 biggest creditors over $3 billion.
Sam faces a string of serious allegations, including using investors’ money to support Alameda, his investmenting trading firm. He stands accused of eight criminal counts - including wire fraud and conspiracy to defraud - in the US.
Currently, it is not understood what investors can salvage of their capital but experts have warned there will be slim pickings left.
In addition, Sam is also alleged to have violated campaign finance laws.
During a press conference on Tuesday, the US Attorney for the Southern District of New York, Damian Williams detailed how Sam is up against some of the biggest fraud claims in American history.
He claimed that Sam had deployed “tens of millions” in illegally acquired dosh for unlawful donations to both Democrats and Republicans.
Damian said: "All this dirty money was used in service of Bankman-Fried's desire to buy bipartisan influence and impact the direction of public policy in Washington."
In prior media engagements, Sam has denied intention to defraud but confessed to making mistakes.
