Federal officials are moving former FTX CEO Sam Bankman-Fried to a new prison in California.
According to a recent report by The Wall Street Journal, a Bankman-Fried spokesman confirmed the move, but did not give a specific destination. People familiar with the matter said Bankman-Fried is likely to be transferred to the federal penitentiary in Mendota, California.
Shortly after the transfer process began, the judge who presided over Bankman-Fried’s trial issued an order instructing the Federal Bureau of Prisons to keep him in New York “to facilitate access to appellate counsel.”
This recommendation by U.S. District Judge Lewis Kaplan followed a motion filed by Bankman-Fried’s lawyers more than six weeks ago. It is uncertain whether the judge’s order will halt the transfer process to the new prison.
“We appreciate the court’s attention and hope that the BOP will comply with its recommendations,” the spokesman said.
The report indicated that due to his lengthy sentence, Bankman-Fried is likely to be placed in a medium-security prison under federal guidelines, although it is unclear what facility he will be placed in.
According to Michael Santos, founder of Prison Professors, the transfer process could take a month or more due to its slow nature.
In March 2024, Judge Kaplan sentenced Bankman-Fried to 25 years in prison and an $11.02 billion fine in Manhattan federal court. Kaplan described Bankman-Fried’s defense as “misleading, logically flawed and speculative,” stating that he had never seen a “performance” like his testimony.
Prosecutors are additionally seeking a sentence of five to seven years in prison for former FTX director Ryan Salame.
In a sentencing memorandum, lawyers for the Southern District of New York argued for an extended prison term, citing the seriousness of the crimes and the need for general deterrence in sentencing.
on May 14, Salame’s lawyers filed a memo requesting a prison sentence of no more than 18 months, arguing that Salame did not play a major role in the fraud and lost most of his fortune as a result of the FTX collapse.
