The recent transfer would place Bankman-Fried closer to his parents’ residence near Stanford University, about a two-and-a-half-hour drive away.
Sam Bankman-Fried (SBF), a former crypto giant and founder of the collapsed cryptocurrency exchange FTX, is being transferred to a new prison facility as part of ongoing security and administrative measures.
According to a spokesman for the jailed FTX founder, the new development overrides his wishes to stay in New York and participate in helping to prepare for his appeal.
According to Bankman-Fried’s representative, who confirmed the transfer, the destination remains undisclosed.
SBF Likely to Move to California
Sources familiar with the story suggest that SBF is likely being moved from the Brooklyn, New York, jail, where he has been for the past nine months, to a federal correctional facility in Mendota, California.
According to the Bureau of Prisons website, Mendota has medium-security and minimum-security facilities. The relocation would place SBF closer to his parents’ residence near Stanford University, about a two-and-a-half-hour drive away.
Despite the recommendations, SBF preferred to stay at Brooklyn’s Metropolitan Detention Center (MDC), a mixed-security facility in New York, for easier access to his legal team to handle his appeal.
New Prison Transfer and Conviction
At the time of writing, it is yet to be disclosed whether the disgraced FTX founder has left MDC Brooklyn or gotten to his speculated new location in California, where he will continue serving his sentence.
During the trial, SBF was found guilty of two instances of wire fraud, two instances of wire fraud conspiracy, one count of securities fraud and commodities fraud conspiracy, and one count of money laundering conspiracy.
The financial misconduct of SBF is considered one of the largest financial frauds in U.S. history. It led to losses of billions of dollars belonging to FTX customers and eventually led to the collapse of the once-crypto giant exchange, which announced bankruptcy in late 2022.
After his conviction, the former FTX CEO was initially kept in MDC Brooklyn. However, Judge Lewis A. Kaplan of the Southern District of New York canceled his bail early last year regarding accusations of witness tampering.
On March 28, Judge Kaplan sentenced SBF to 25 years in prison, with three years of supervised release and an $11 billion confiscation. However, he filed an appeal against his conviction and sentence for fraud.
Meanwhile, Ryan Salame, a former top executive of FTX and a wingman to SBF, will receive his sentencing on May 28 for his role in the collapse of the crypto exchange. Other members of Bankman-Fried’s inner circle, including Caroline Ellison, Nishad Singh, and Gary Wang, who cooperated with authorities, are still awaiting sentencing.