The FTX Founder’s Experience in Prison Economics
During his time at the Brooklyn Metropolitan Detention Center (MDC), convicted FTX founder Sam Bankman-Fried engaged in a unique form of prison economics. Instead of Bitcoin and crypto, he participated in a system where mackerel pouches were used as currency. According to sources familiar with the matter, Bankman-Fried exchanged four mackerel pouches for a haircut he received at his trial.
A Shift from Crypto-Investing to Prison Economics
Bankman-Fried’s conviction has likely prevented him from leading a digital asset business for a significant period of time. As a result, he seems to have embraced the prison economy. This unconventional system, based on the stability of mackerel pouches, has proved more reliable than cryptocurrencies, according to prison consultant Bill Baroni. Bankman-Fried has even provided crypto tips to prison guards on occasion.
Sharing Space with Notorious Figures
While awaiting his sentencing in March 2024, Bankman-Fried is sharing a prison unit with high-profile inmates such as Juan Orlando Hernández, the former President of Honduras accused of drug trafficking, and Genaro García Luna, an ex-government official convicted of aiding Mexico’s Sinaloa cartel.
Possible Decades in Prison for Bankman-Fried
In November 2023, Bankman-Fried was found guilty on all seven criminal charges related to FTX’s collapse. It is anticipated that he may face decades in prison as a result. His former top lieutenants who reached plea deals with the U.S. Justice Department may be sentenced after him. Despite their cooperation with the government, jail time remains uncertain for them.
Appeal for Release Denied
Bankman-Fried’s appeal for release prior to his sentencing was rejected by the U.S. Court of Appeals for the Second Circuit.
Hot Take: Embracing Prison Economics: A New Chapter for Bankman-Fried
The FTX founder’s experience in prison has led him to adapt and navigate the unique world of prison economics. In an environment where mackerel pouches hold more value than cryptocurrencies, Bankman-Fried has found a new form of currency. As he awaits his sentencing and faces the possibility of spending decades in prison, he shares space with notable figures involved in criminal activities. Despite his conviction, Bankman-Fried’s former colleagues may have a different fate due to their cooperation with authorities. The rejection of his appeal for release further solidifies his current situation.
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