- Photo surfaces of FTX founder Sam Bankman-Fried behind bars after arrest for fraud related to FTX collapse
- Bankman-Fried looks unkempt with long hair in photo taken around Christmas at Brooklyn jail
- FTX implosion continues to roil crypto industry, spurring investigations and proposals for increased regulation
The collapsed cryptocurrency exchange FTX was once valued at $32 billion. But in November 2022, FTX froze customer withdrawals as investors pulled out more than $6 billion in three days. The company and its founder Sam Bankman-Fried subsequently filed for bankruptcy.
Bankman-Fried Behind Bars
A photo has now emerged showing Bankman-Fried behind bars after his arrest on fraud charges related to the FTX collapse. The photo was obtained by journalist Tiffany Fong and shows Bankman-Fried posing with inmates at the Metropolitan Detention Center in Brooklyn, New York.
In the photo, Bankman-Fried sports longer, unkempt hair and a slimmer physique compared to his clean-cut image during FTX’s heyday. The photo was taken around Christmas, when inmates are allowed to pose for pictures.
Reactions
The photo sparked reactions on social media. One Twitter user claiming gang affiliation stated “Sam didn’t snitch on anyone.”
Bankman-Fried faces charges of wire fraud, securities fraud, money laundering and campaign finance violations. He pleaded not guilty, and faces trial in October 2023 if he does not reach a plea deal with prosecutors.
FTX Aftermath
FTX’s collapse has continued to send shockwaves through the crypto industry. Investors lost billions, and companies like BlockFi and Genesis filed for bankruptcy soon after.
Regulators have vowed to increase oversight of the crypto sector. New legislation has been proposed to regulate stablecoins and crypto exchanges.
The Justice Department and Securities and Exchange Commission have launched investigations into FTX and other major crypto firms. More charges against FTX insiders are possible.
Conclusion
The emergence of Bankman-Fried’s jail photo underscores the ignominious downfall of FTX and its once-celebrated founder. The crypto world is still grappling with the wreckage left behind by FTX’s implosion. But increased regulation may help rebuild trust in the industry going forward.
