Formerly a prominent figure in the world of cryptocurrency, Sam Bankman-Fried now resides in an entirely contrasting environment: behind bars.
Captured in his prison garb for the first time, the 31-year-old appears with a disheveled beard and a visibly leaner physique. What’s particularly surprising is his proximity to ex-gang members at New York’s Metropolitan Detention Center, a stark departure from the luxurious lifestyle he once relished in the Bahamas.
Dubbed the ‘Crypto G’ by The Daily Mail, the photo, initially shared by crime reporter Tiffany Fong, offers a glimpse into Bankman-Fried’s altered reality. In an interview with another inmate and former Bloods gang member known as G Lock, insights were provided into how the former billionaire is adjusting behind bars.
“Sam had a belly, he was eating good. He’s skinny like a toothpick,” said G Lock. “He’s not getting a shower, he’s not doing anything. He didn’t snitch on nobody, Sam is a gangster. He’s a good guy, he really is. Weird as shit, can be strange. But he is a good guy. He’s not as clean-shaven as he used to be, but he’s obviously going through a lot right now.”
In a somewhat lighthearted appeal, G Lock even called on President Joe Biden to pardon the disgraced mogul. Nice try, G Lock.
Bankman-Fried’s transformation from crypto magnate to convict has been rapid and sensational. Convicted on all seven counts of fraud linked to a USD$10 billion scam, he witnessed the collapse of his once towering empire (as reported by The Daily Mail). From FTX’s valuation of USD$32 billion to facing the grim prospect of a 115-year prison sentence, his downfall serves as a stark warning in the unpredictable realm of cryptocurrency.
According to prosecutors, Bankman-Fried masterminded an intricate scheme through his crypto exchange FTX and its affiliated company Alameda Research, described as a “pyramid of deceit,” resulting in the misappropriation of billions. In defense, his legal team, likening the trial’s theatricality to a movie, argued that the MIT math graduate had no malicious intent but rather made mistakes while overseeing two multi-billion dollar enterprises.
During the peak of the cryptocurrency frenzy a few years ago, Bankman-Fried seized the opportunity, leveraging the excitement to propel FTX to a staggering valuation of USD$32 billion before its eventual collapse in November 2022. Throughout his ascent, he adorned the cover of Forbes and shared platforms with influential figures such as Bill Clinton and Tony Blair, earning accolades as the future of finance.
However, prosecutors argued during the trial that his public persona concealed a scheme to misappropriate funds from FTX clients, depicting it as a “house of cards” that crumbled amid declining crypto values and skepticism surrounding FTX’s valuation, particularly regarding its FTT cryptocurrency token. As clients rushed to withdraw their funds, triggering a crypto equivalent of a bank run, FTX halted its operations.
While acknowledging the consequences of his actions and admitting to significant mistakes, Bankman-Fried vehemently denied any involvement in fraudulent activities when questioned by his attorney, Mark Cohen. As he awaits his fate behind bars, all attention is focused on March 28, when he will receive his final sentence.