SBF to Remain in a Bahamian Jail for 2 Months, Report Claims FTX Execs Had a Covert Chat Channel Called ‘Wirefraud’

On Tuesday, the erstwhile CEO of FTX, Sam Bankman-Fried (SBF), appeared successful tribunal with his recently appointed lawyer Mark Cohen, and his ineligible squad asked the Bahamian justice Joyann Ferguson-Pratt to merchandise SBF connected bail with an ankle bracelet. Amid the lengthy tribunal proceeding reports item that SBF’s parents Joseph Bankman and Barbara Fried attended the proceedings. Toward the extremity of the hearing, justice Ferguson-Pratt denied SBF’s petition to beryllium released connected bail and remanded Bankman-Fried to the Bahamian jailhouse until Feb. 8, 2023.

Bankman-Fried’s Media Tour Comes to an End, AFR Report Claims FTX Insiders Had a Secret Signal Chat Group Called ‘Wirefraud’

During the archetypal week of November, the co-founder of FTX Sam Bankman-Fried’s (SBF) satellite turned upside down. It each started erstwhile Coindesk published an expose connected SBF’s quantitative trading steadfast Alameda Research and the tremendous equilibrium of FTT tokens the institution held. After the report, FTX and Alameda were nether the spotlight and Binance’s CEO Changpeng Zhao (CZ) revealed his speech would beryllium dumping each of its FTT tokens.

These 2 events fueled speculation that FTX and Alameda were insolvent and connected Nov. 8, 2022, Binance said it would acquisition FTX aft doing owed diligence into the company’s financials. However, the woody ne'er panned out, and astatine 4:00 p.m. (ET) connected Nov. 9, 2022, the world’s largest crypto plus speech by commercialized measurement announced it would beryllium backing retired of purchasing FTX.

After SBF’s lawyers Mark Cohen and Jerome Roberts begged the justice to merchandise SBF connected bail, Bahamian justice Ferguson-Pratt denied the petition and said SBF indispensable stay successful jailhouse until his adjacent tribunal proceeding connected Feb. 8, 2023.

At this constituent successful time, each the integer assets from FTX’s coffers were either withdrawn by customers (many of whom were Bahamas natives) oregon simply disappeared. Two days aft Binance backed retired of the deal, SBF announced that FTX and Alameda had filed for Chapter 11 bankruptcy protection, alongside astir 130 associated companies.

SBF besides revealed helium had stepped down from his presumption arsenic FTX’s CEO and John J. Ray III took the presumption successful bid to woody with the bankruptcy and restructuring process. Since the bankruptcy filing, SBF embarked connected a media tour doing a ample fig of interviews, portion a important magnitude of troubling grounds was being reported by galore media publications.

Prior to SBF’s arrest successful The Bahamas, a study published by the Australian Financial Review (AFR) detailed that FTX’s SBF and his interior ellipse utilized a concealed chat radical called “Wirefraud.” AFR’s United States analogous Matthew Cranston said “[AFR] has [learned] that FTX founders Sam Bankman-Fried and Zixiao ‘Gary’ Wang, on with FTX technologist Nishad Singh and erstwhile Alameda Research main enforcement Caroline Ellison, utilized a chat radical connected Signal successful the anticipation that the accusation would stay hidden.”

24 aft the AFR study was published, Bankman-Fried was arrested. The FTX co-founder was besides indicted by a national expansive assemblage successful Manhattan, and charged with eight counts of fiscal fraud by the Southern District of New York (SDNY) authoritative Damian Williams. SBF was further charged by the U.S. Securities and Exchange Commission (SEC) and sued by the Commodity Futures Trading Commission (CFTC).

SBF’s Legal Team Attempts to Get the Co-Founder retired of Jail, Bahamian Judge Denies Bail, Disgraced FTX Co-Founder Gets Escorted retired of Courthouse successful Handcuffs

The aforesaid day, SBF appeared successful tribunal and his ineligible squad attempted to get him released connected bail. One report notes that Joseph Bankman and Barbara Fried, SBF’s parents, attended the tribunal hearing. SBF’s parent allegedly laughed retired large each clip her lad was called a “fugitive,” and his begetter enactment his fingers successful his ears. His lawyer, Mark Cohen, the lawyer who represented Ghislaine Maxwell during her enactment trafficking trial, attempted to get SBF released connected $250,000 bail.

SBF’s begetter Joseph Bankman (pictured left). SBF’s parents Joseph Bankman and Barbara Fried (pictured close astatine the tribunal proceeding connected Tuesday). Despite SBF saying his parents were not progressive with FTX’s dealings, the New York Times (NYT) elaborate that “[Joseph Bankman] was a paid FTX worker who traveled often to the Bahamas.” The NYT study besides says SBF’s parents person go “the taxable of gossip connected Stanford’s campus.” “I had a person who said, ‘You don’t privation to beryllium seen with them,’” a erstwhile dean astatine Stanford and a adjacent person of the Bankman-Fried household told the NYT reporter.

Cohen is quoted arsenic saying that his lawsuit “suffered from depression, insomnia, and ADD for implicit a decade.” During the hearing, prosecutors argued that SBF was a “flight risk” owed to each of his fiscal connections. However, justice Ferguson-Pratt did not look swayed by the claims that said SBF suffered from alleged intelligence issues, and the information that SBF had surrendered his passport.

Judge Ferguson-Pratt told the tribunal that bail was denied and SBF was to stay successful custody until his Feb. 8, 2023 tribunal hearing. Following the decision, the New York Post reports that SBF lowered his head, and gave his parents a hug earlier being escorted retired of the courthouse successful handcuffs.

What bash you deliberation astir SBF’s caller apprehension and the accusations that accidental his interior ellipse were portion of a concealed chat radical called “Wirefraud?” What bash you deliberation astir the Bahamian justice denying SBF’s bail? Let america cognize what you deliberation astir this taxable successful the comments conception below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial photograph credit: New York Post, Eyewitness News Bahamas,

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