Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

FTX's Bankman-Fried 'subsisting on bread and water' in jail, lawyer says

Published 08/22/2023, 06:11 AM
Updated 08/22/2023, 05:35 PM
© Reuters. FILE PHOTO: Sam Bankman-Fried, the founder of bankrupt cryptocurrency exchange FTX, arrives at court as lawyers push to persuade the judge overseeing his fraud case not to jail him ahead of trial, at a courthouse in New York, U.S., August 11, 2023.  REUTE

By Luc Cohen and Jody Godoy

NEW YORK (Reuters) -FTX cryptocurrency exchange founder Sam Bankman-Fried is "subsisting on bread and water" because the federal jail where he is being held ahead of his fraud trial has not provided him with a vegan diet as he requested, his lawyer said on Tuesday.

Bankman-Fried, 31, pleaded not guilty in Manhattan federal court to seven criminal charges contained in a new indictment during a hearing before U.S. Magistrate Judge Sarah Netburn.

His lawyer, Mark Cohen, told Netburn during the hearing that a lack of adequate food and medication provided at Brooklyn's Metropolitan Detention Center was hampering Bankman-Fried's ability to prepare for his scheduled October trial.

The former billionaire was led into court wearing leg restraints and a beige-colored uniform for his first appearance since his bail was revoked on Aug. 11 by U.S. District Judge Lewis Kaplan, who found that Bankman-Fried had tampered with witnesses at least twice.

"Not guilty," Bankman-Fried told Netburn in entering his plea.

After the hearing, Bankman-Fried spoke to his mother, Stanford Law School Professor Barbara Fried, across the low partition between the courtroom well and the galley.

The new indictment, returned on Aug. 14, charged Bankman-Fried with seven counts of fraud and conspiracy over the November 2022 collapse of FTX, which is now in bankruptcy.

Prosecutors accused him of stealing billions of dollars in FTX customer funds to plug losses at his hedge fund, Alameda Research. Bankman-Fried has acknowledged inadequate risk management at FTX, but has denied stealing customer funds.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The indictment no longer charges Bankman-Fried with conspiring to violate U.S. campaign finance laws. Prosecutors said the Bahamas, which extradited Bankman-Fried to the United States in December 2022, objected to him being tried on that count.

Prosecutors with the U.S. Attorney's office in Manhattan said they would nevertheless seek to show that the $100 million Bankman-Fried allegedly donated to U.S. political campaigns and causes was part of his wider-ranging fraud scheme.

At Tuesday's hearing, his lawyers said the jail's failure to provide him with the medication Adderall to treat attention deficit hyperactive disorder - despite a court order for the facility to do so - and serve him vegan food would hinder his ability to participate in preparing his defense case.

"Because he's following his principles, he is literally now subsisting on bread and water," Cohen said, adding that his client's supply of the medication Emsam to treat depression was running low.

Kaplan, who will oversee Bankman-Fried's trial, on Aug. 14 ordered the jail to provide the defendant with the two drugs.

Netburn said during the hearing she would ask the U.S. Justice Department's Bureau of Prisons, which runs the jail, to address the issues with Bankman-Fried's medication. Netburn said she was "reasonably confident" the facility - long plagued by conditions public defenders have called "inhumane" - offered vegetarian food, but was not sure vegan food was available.

In a statement, the Bureau of Prisons said MDC inmates had access to "appropriate" healthcare, medicine and hot meals. It said the facility "provides nutritionally adequate meals" following the requirements of a national menu that is "analyzed yearly to ensure all dietary requirements are met."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Bankman-Fried was jailed after sharing the personal writings of his former romantic partner and colleague, Caroline Ellison, with a New York Times reporter. Ellison, who had been Alameda's chief executive, is one of three former members of his inner circle who have pleaded guilty and agreed to testify against him at trial. 

Latest comments

I wonder if the author would have mentioned his mom's profession if she were a cleaner at Walmart.
Fthis Censoring Site. Run by a flock of bankman-fridos
Did CZ touch you with his pè pee
Smdh I wonder if he's been raped yet?
I am sure there are some shit corners there
given the hardships he's caused others not sure i have a lot of sympathy for him or his lawyers other than the meds
He should be happy, he supports the democrat party that wants to bring communism to the US. His current lifestyle in prison is a typically communist lifestyle.
lol
BOP is not a 5🌟 Hotel. (Sorry.)
Oh no… anyway
lmao vegan diet in prison. good luck with that one.. does he not understand he is in jail?
Put him in general population.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.