Sam Bankman-Fried was denied bail in the Bahamas and will remain in custody until February 8, 2021. Bankman-Fried’s attorneys filed for bail on December 13, but Judge JoyAnn Ferguson-Pratt said the FTX founder needs to remain in custody because ” danger of fleeing.

Sam Bankman Fried denied bail

The attorney representing Bankman-Fried asked for $250,000 bail on December 13. The lawyer argued that the former FTX CEO suffers from insomnia and depression and has not taken his medication, including antidepressants and Adderall, since his arrest.

The lawyers also said Bankman-Fred had no criminal record and had not fled the Bahamas despite having the opportunity to do so. They also said that Bankman-Fried was willing to conduct electronic monitoring or report to the police station regularly if his application for bail was granted.

Judge Ferguson Pratt had previously said Bankman-Fried was entitled to a bail hearing. However, it denied the request and ordered that the FTX founder remain in custody of the Bahamas Department of Corrections until February 8, 2023. The case facing the cryptocurrency executive will be heard on this date.

FTX Update: SBF is leaving the Magistrates Court. He will be remanded to the Bahamas Department of Corrections until the resumption of his case on February 8, 2023. pic.twitter.com/dqXsHeNXSK

– Eyewitness News Bahamas (@ewnewsbahamas) December 13, 2022

Bankman Fried was arrested by the Bahamas Police Force on December 12. His arrest came after the US government said it had brought criminal charges against him. The cryptocurrency executive is currently facing eight counts of financial and securities fraud.

Since his arrest, US regulators have opened several charges against Bankman-Fried. Both the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have filed charges against Bankman-Fried.

FTX CEO testifying before the US Congress

Prior to his arrest, Bankman-Fried was scheduled to testify before the US Congress regarding the events leading up to the collapse of FTX, but this never happened. However, the current CEO of FTX overseeing the exchange’s bankruptcy, John J. Ray III, Back Before Congress to shed light on the situation.

In his testimony, Ray said that the collapse of FTX was caused by a small group of inexperienced people who did not implement the necessary controls for a company that handles client funds and assets.

He noted that after assessing the situation, he made an explicit decision to file for Chapter 11 bankruptcy, and was taking steps to regain control of the situation. Ray was also questioned about why he said FTX was worse than Enron, as he said the exchange had no record keeping.

“Nothing against Quickbooks, a very good tool, just not for a multi-billion dollar company. There is no independent board of directors. We had one person really in control of this,” Ray added.

Ray also said that there is no doubt that customer funds on FTX have been transferred to Alameda, a cryptocurrency hedge fund co-founded by Bankman-Fried. He also admitted that the Bankman-Fried family also received payments from FTX. Previous reports claimed that the Bankman-Fried family had invested in several properties in the Bahamas.

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