After almost two weeks spent in one of the most feared penitentiary facilities in the United States, the former CEO and co-founder of the FTX platform, Sam Bankman-Fried, has been officially transferred to a low-security federal prison in the Los Angeles area.
The transfer to a new facility, announced by the Federal Bureau of Prisons, represents a significant shift in the detention conditions of the former cryptocurrency magnate, sentenced to 25 years for fraud and conspiracy.
Sam Bankman-Fried: from the “Victimville” prison to Terminal Island
For a brief but intense period, Bankman-Fried was incarcerated in the Victorville prison, a medium-security facility in inland California, sadly nicknamed “Victimville” due to the high rate of violence among inmates. In that prison, according to several former inmates, stabbing incidents and fights were common, and the atmosphere required belonging to certain groups to ensure protection.
A drastic change came with the transfer to FCI Terminal Island, a federal prison located in the port district of San Pedro, just outside Los Angeles. The facility overlooks the water, and although built in the 1930s, today it houses over 900 inmates in an environment described as quiet, well-located, and with good quality food. The structure is also known for having hosted the famous mobster Al Capone in 1939.
A more “livable” environment for SBF
FCI Terminal Island offers inmates broader access to educational, legal, and occupational programs. Bankman-Fried will be able to consult a legal library and spend up to 360 dollars per month through a commissary account to purchase personal products. Inmates also have the opportunity to participate in professional internships in fields such as welding, plumbing, cooking, baking, and carpentry, contributing to a more rehabilitative dimension of detention.
Among the fellow inmates are other well-known names from the financial and technological world, such as Mouli Cohen (entrepreneur in the video game sector) and Anthony Elgindy (former Wall Street broker), both convicted of fraud and financial crimes. However, while on one hand the proposed activities seem to encourage reintegration, some have described the quality of medical and dental care as “terrible”, highlighting some shortcomings of the system.
The past behind bars
Bankman-Fried had already been incarcerated for over 18 months in the maximum-security prison Metropolitan Detention Center in Brooklyn, New York, awaiting transfer. After an initial stop at a transit center in Oklahoma, he experienced the trauma at Victorville before finally arriving at Terminal Island. It is unclear exactly when the final transfer took place, and the Bureau of Prisons has not provided timely responses to requests for clarification.
A conviction that made history
The scandal related to the collapse of the crypto exchange FTX has represented one of the most serious cases in recent American financial history. Bankman-Fried was found guilty of seven charges, including wire fraud, securities fraud, and commodities fraud. The collapse of his platform harmed millions of users and investors worldwide, raising questions about transparency and regulation in the cryptocurrency sector.
The verdict came in November 2023, when a federal court sentenced him to 25 years of detention. However, his lawyers have already filed an appeal in the fall, arguing that Bankman-Fried was “presumed guilty” even before the trial began. In addition to his neurological state – being an autistic person – another point they insisted on to obtain more favorable conditions in detention is his lack of criminal record.
On the political front, the former CEO is moving
While serving his sentence, Sam Bankman-Fried seems to be adopting a new political strategy in an attempt to gain clemency. In a recent interview with the New York Sun, he expressed strong criticism towards the Biden administration and the judicial system that convicted him, aligning himself more closely with the ideas of the American right. In particular, he reportedly declared support for President Donald Trump and the entrepreneur and CEO of Tesla Elon Musk.
A move that could represent a deliberate attempt to obtain a presidential pardon, now that the regulation on digital assets seems to be loosening under the more permissive eye of the new administration. It seems that even his parents are actively helping in the request for official pardon from Trump, in support of his line of defense.
On the future of Sam Bankman-Fried
The transfer to a low-security prison represents a significant improvement for Sam Bankman-Fried compared to staying in Victorville and can be interpreted as a step forward in his legal and personal battle. However, the road to a possible sentence reduction, or a presidential pardon, is still long and uncertain.
It remains to be seen if his name will return to the center of public attention, at a time when, in the United States, the collective memory of the FTX disaster seems to have faded. In the meantime, Bankman-Fried will try to rebuild, from behind bars, a deeply compromised public image.