SDNY COURTHOUSE, Dec 22, 2022 – Sam Bankman-Fried of FTX was indicted in the U.S. District Court for the Southern District of New York, leading to his arrest in the Bahamas on December 12, and extradition to the US on December 21.
Late on December 21, the US Attorney's Office issued a video announcing that SBF was "in FBI custody and will be transported directly to the Southern District of New York."
The US Attorney's Office also released the plea agreements (signed December 19) of Caroline Ellison of Alameda (on Inner City Press' DocumentCloud here) and of Gary Wang - on Patreon here.
On December 22 when Bankman-Fried was presented and released on $250 million bond, Inner City Press live tweeted, thread here:
All rise!
US has a "location monitoring specialist" at their table.
Assistant US Attorney Nick Roos: Defendant consented to extradition and was transported by the FBI. He arrested in the US in this district last night, in Westchester.
Bankman-Fried is at defense table with two lawyers.
Magistrate Judge Gabriel W. Gorenstein: I understand you have retained counsel. Count 1 is that you conspired to commit the crime of wire fraud, by agreeing to defraud customers of FTX.com
Judge Gorenstein: You are also charged with commodities fraud, by purporting to trade swaps... You are charged with securities fraud, with false information about http://FTX.com 's financial condition. Also, conspiracy to commit money laundering...
Judge Gorenstein: You are also charged with violating campaign finance laws. Have you seen this indictment? Defense counsel: Yes, and we waive the public reading. Judge Gorenstein: The indictment will be at a later date.
Assistant US Attorney Nick Roos: For bail, you must consider the weight of the evidence. This was a fraud of epic proportions. If that was the only test, detention would likely be appropriate. But he voluntarily consented to extradition. That should be given weight
AUSA Roos: If he had resisted, we would have opposed release. But his assets have diminished. This is a financial crime and he no longer works for FTX or Alameda. So risk to the community is a marginal consideration. We propose a restrictive bail package
AUSA: We believe this is the highest ever pre-trial bond. That's our proposal. Judge Gorenstein: Go ahead. AUSA Roos: A $250 million bond, signed by defendant and his parents, and a non family member, secured by the parents' home, where he will live, in Palo Alto
AUSA Roos: He could live the home for purposes of exercise... Mental health and substance abuse treatment. No financial transactions in excess of $1000 without preapproval by the government, except to pay legal fees. He would be released today
AUSA Roos: He would be required to turn himself in to Pre Trial Services in the ND of California tomorrow by 10 am. I believe the defense has consented to this. Judge Gorenstein: Pre-trial services? Pre-trial: We could install GPS today.
Defense counsel: I'd like to emphasize, my client voluntarily consented to come face these charges in NY. Extradition can take months or years in the Bahamas. [Bankman-Fried is sitting with his arms cross in front of him, wearing a suit with 2 Marshals behind him
Defense counsel: His parents are Stanford professors. We ask that you accept release. Judge Gorenstein: Under the Bail Reform Act, at this point we have an indictment, a grand jury has found probable cause.
Judge Gorenstein: This individual has no prior criminal history of any time, and strong ties to this country; his family lives here. There's no record of violence. He is a citizen. This is a first arrest
Judge Gorenstein: The defendant has achieved sufficient notoriety it would be impossible for him to continue financial transactions - this notoriety also goes to risk of flight. He would be recognized. So I am going to permit release...
Judge Gorenstein: He will surrender his passport - it has already been surrendered. Home detention with local monitoring, to be installed today. He must live in his parents' home in Palo Alto. No new business without pre-approval of Pre Trial Services
Judge Gorenstein: The non parent signatures by January 5, the security interest in the home by January 12. Anything else? Mr. Cohen? Cohen: My client has a private therapist that he says, I think Pre-Trial will be OK with it.
Cohen: For the next conference before District Judge Abrams on January 3, my client will want to attend virtually. Judge Gorenstein: Ask Judge Abrams. I agree to an exclusion of Speedy Trial Act time until January 3.
Judge Gorenstein: Mr. Bankman-Fried, if you violate the conditions, a warrant will be issued for your arrest. Do you understand?
Bankman-Fried: Yes I do.
Judge Gorenstein: We are adjourned.
Here is the indictment, on Inner City Press' DocumentCloud here.
The US Attorney's Office is said to be On December 21, the SDNY US Attorney's Office won the continued detention of a woman from Columbia seeking asylum following the murder of her husband (and, selling fentanyl) - Inner City Press exclusive here.
The case us US v. Bankman-Fried, et al., 22-cr-673 (Abrams).
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Please note Matt’s tweet from yesterday, “Courtroom Contrasts”:
LITERARY SDNY, Dec 21 – In the week after the SDNY press conference about Sam Bankman-Fried, in the courthouse and its Press Room the tension built.
Court artists came, since photography is prohibited in the courthouse. Reporters staked out the courtroom of District Judge Ronnie Abrams, to whom the case had been assigned, and the small Magistrates Court where on most days Kurt Wheelock was the only member of the media, or even member of the public. It was all different now.
"Crypto Man" was coming, as one non-techie reporter put it. Kurt tried to get ready.
Since one of Kurt's beats before he came to the courthouse was banking, or anti-banking more precisely, he submitted Freedom of Information requests to the agencies which had allowed FTX / Alameda to buy a stake in Farmington State Bank (subsequently renamed Moonstone Bank), and put customers' money into Silvergate Bank.
And then, as always, a break in the case.
As Kurt Wheelock tried to re-index his website while uploading stories about the day's more obscure criminal cases, including a woman from Columbia seeking asylum after her husband was murdered - and, yes, selling fentanyl - two plea agreements and a video came in, from the prosecutors. Caroline Ellison and Gary Wang had pleaded guilty, it said, with the agreements signed on December 19.
Apparently they withheld them until SBF was in the air and couldn't turn back. Or could he? Also, a recorded video from US Attorney Damian Williams, that SBF "will be transported directly to the Southern District of New York."
That seemed to preclude an overnight in Essex County Correctional Facility in New Jersey, or the MDC in Brooklyn - in the EDNY. So was SBF in the same courthouse where Kurt sat typing, and shaking his fist at censorship, and looking out the window at Chinatown below?
It emerged overnight that SBF had been flown into the Westchester airport in White Plains - yes, in the SDNY - and would from there be taken to the courthouse in the morning. And so Kurt headed there....more on Patreon here 1 and here 2
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I began following Matthew over a year when he was in daily attendance during the trial of Ghislaine Maxwell. He often reports on interesting cases and I recommend following him.
You have surely started up on Goodness-knows what...
https://rayhorvaththesource.substack.com/p/is-substack-now-turning-completely