Sam Bankman-Fried (SBF), the founder of the now-defunct cryptocurrency exchange FTX, has been transferred to the Federal Correctional Institution (FCI) Terminal Island in Los Angeles, California. This low-security facility is known for housing non-violent offenders and has previously held notable inmates such as Ramesh “Sunny” Balwani, former COO of Theranos.
Prior to this transfer, SBF was held at the Metropolitan Detention Center in Brooklyn. He was then moved to the Federal Transfer Center in Oklahoma City, followed by a brief stay at a medium-security prison in Victorville, California, before arriving at Terminal Island.
SBF is serving a 25-year sentence following his conviction on multiple counts of fraud and conspiracy related to the collapse of FTX. The exchange’s failure led to significant financial losses for investors and shook the cryptocurrency industry. As part of his sentence, he has also been ordered to pay $11 billion in restitution.
This development is part of our ongoing “Startup on Trial” series, which examines the intersection of innovation and regulation in the tech startup world. For a comprehensive analysis of the FTX case and its implications, refer to our initial installment on Sam Bankman-Fried.
If you have information about other tech startups operating in legal gray areas or engaging in questionable practices, we encourage you to share your insights through our whistleblower platform, Whistle42.
