Sam Bankman Fried denied bailSource: Screenshot of a video, CNBC/YouTube

A Bahamian judge has denied bail to Sam Bankman-Fried, the disgraced founder and former CEO of cryptocurrency exchange FTX.

A Bahamian judge on Tuesday denied SBF bail hours after US prosecutors alleged the crypto boss defrauded clients, embezzled billions of dollars and violated campaign laws in what has been described as a one of the largest financial frauds in the United States, according to a Reuters report.

SBF was returned to the only prison in the Bahamas. Named Fox Hill, the facility is known for its overcrowding and unsanitary conditions, according to human rights reports.

The Bahamian government arrested SBF on Monday after "receiving formal notification from the United States that it has filed criminal charges against SBF and is likely to request their extradition."

The Southern District of New York, which is investigating Bankman-Fried and the collapse of FTX and its sister trading company Alameda, charged SBF with eight counts, including wire fraud and conspiracy to embezzle client funds. If convicted of all eight charges, he could face up to 115 years in prison, CNN reported.

Separately, the Securities and Exchange Commission accused SBF of "orchestrating a scheme to defraud investors in FTX shares." SEC Chairman Gary Gensler said in a statement: "

“We allege that Sam Bankman-Fried built a house of cards on a basis of deception while telling investors it was one of the safest buildings in crypto. The alleged fraud committed by Mr. Bankman-Fried is a call to crypto platforms to comply with our laws.”

In early November, FTX announced that it had filed for Chapter 11 bankruptcy in Delaware. Notably, FTX US was also included in the proceedings, despite the former CEO's claims that his US exchange was correct.

SBF, who recently invited the BBC to his mansion in the Bahamas, told the media that he hoped to start a new business and earn enough money to reimburse the victims of the collapse.

He also denied the cheating allegations, saying: "I didn't knowingly commit fraud, I don't think I did commit fraud, I didn't want that to happen. He certainly wasn't as knowledgeable as I was. That's what I thought."

However, Gurbir Grewal, head of the SEC's compliance division, said FTX's promise of high-level investor protection principles and detailed terms of service "was not just weak, but fraudulent."

John Ray III, the new CEO of FTX, also claimed that the SBF crypto empire had virtually no corporate control and a surprising lack of financial and other record-keeping, saying he had never seen a "total failure" of corporate controls. throughout his career. .

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