Federal officials have initiated the process to transfer Sam Bankman-Fried, the founder of FTX cryptocurrency exchange, to a new prison despite his preference to remain in New York to assist in preparing his appeal.

Prison Transfer Despite New York Preference

According to a report by the Wall Street Journal today (Wednesday), this decision was made by overriding Bankman-Fried's request. Bankman-Fried, who was sentenced earlier this year to 25 years in prison for charges related to the collapse of FTX, including allegations of stealing $8 billion from customers, had expressed his desire to stay in New York to aid in his appeal process.

The transfer decision comes after Bankman-Fried was found guilty by a jury in November on seven counts of fraud and conspiracy, following the collapse of FTX in 2022. Prosecutors have labelled the collapse as one of the largest financial frauds in US history.

Unified Approach for Customer Claims Resolution

FTX has reached a settlement with the liquidators of its Bahamian subsidiary, consolidating assets and establishing a unified approach to assess customer claims, Finance Magnates reported earlier.

Peter Greaves, the Joint Official Liquidator, described the process as intricate, navigating numerous legal and logistical hurdles. This development is particularly significant for FTX's expansive customer base across 230 jurisdictions, heralding a cooperative effort in asset monetization and claims resolution, expediting fund restitution.

In this accord, FTX's US-based team leads asset recovery endeavours, encompassing potential transactions involving FTX.com and associated intellectual property. Meanwhile, Bahamian liquidators concentrate on divesting local real estate assets and pursuing legal recourse.

FTX Digital Markets faced bankruptcy in the US amid legal battles, regulatory issues, and liquidator appointments. The Securities Commission of the Bahamas suspended FTX's registration and access to assets, followed by actions from regulators in Australia, Japan, and Cyprus. The SCB investigated FTX's CEO, John Ray, over allegations related to the handling of $3.5 billion in customer funds after the exchange's collapse.