According to US authorities, Bankman-Fried used a strategy to steal consumers’ money from FTX in order to swindle them.
A source acquainted with the situation claimed on Thursday that former FTX CEO Sam Bankman-Fried had applied for bail before The Bahamas Supreme Court after having his plea for release denied by a magistrate court on Tuesday.
Bankman-plea Fried’s to stay at home as he awaited a hearing on his extradition to the United States, where he is accused of financial crimes, was denied by Chief Magistrate JoyAnn Ferguson-Pratt, and he was remanded to a Bahamas detention facility.
The application was submitted on Thursday, according to the source, who wished to remain anonymous.
According to U.S. authorities, Bankman-Fried used FTX clients’ deposits as part of a conspiracy to defraud them by using them to pay for expenditures and obligations as well as to invest on behalf of his cryptocurrency hedge fund, Alameda Research LLC.
Before FTX unexpectedly failed this year, Bankman-Fried had created a fortune of over $20 billion by riding the cryptocurrency bubble and growing it into one of the biggest exchanges in the world.
