Sam Bankman-Fried Denied Bail, Faces Harsh Conditions in Bahamas Prison

After being denied bail in a Bahamas Magistrate Court, former FTX CEO Sam Bankman-Fried could spend up to two months in the country’s Fox Hill Prison, a facility notorious for its harsh conditions and reported instances of physical abuse against prisoners.

Authorities in the Bahamas remanded Bankman-Fried to the medical wing of Fox Hill following a Dec. 13 hearing. SBF’s counsel indicated that he had been on medication, including Adderall and antidepressants, prior to his arrest on Dec. 12. However, it remains unclear whether he will serve his time in the general correctional facility, its medical unit, or in an alternative location.

According to a 2021 human rights report from the U.S. State Department, conditions at Fox Hill were described as “harsh.” Investigations found the facility to be overcrowded, with prisoners facing poor nutrition, inadequate sanitation, and medical care. Reports also alleged instances of physical abuse by correctional officers.

As noted in the report, “Maximum-security cells for men measured approximately six feet by 10 feet, holding up to six persons with no mattresses or toilet facilities.” Inmates were required to remove human waste using buckets, and many suffered from bedsores due to a lack of beds and bedding.

Fox Hill is the only prison in the Bahamas, while the Carmichael Road Detention Center is designated for short-term stays. Since the release of the State Department report, Bahamian Commissioner of Correctional Services Doan Cleare has indicated that most facilities had been renovated and reported no issues with rodents.

Sam Bankman-Fried is expected to remain in custody in the Bahamas until February while extradition proceedings with the United States move forward. The former CEO faces charges from various authorities, including the Justice Department, Commodity Futures Trading Commission, and Securities and Exchange Commission, for defrauding investors and lenders.

The arrest of Bankman-Fried has been a long-awaited development for many in the crypto community, especially following the liquidity crisis and subsequent bankruptcy of FTX. The former CEO had been on an extended ‘apology tour’ across major media platforms prior to his arrest, during which critics pointed out numerous inconsistencies and falsehoods in his statements.

In a heated Twitter discussion, some crypto influencers expressed disbelief that Bankman-Fried chose to reside in the Bahamas, especially considering the prison conditions:

“Absolutely baffling that SBF settled in the Bahamas and chose to stay even after the FTX collapse, presumably knowing the conditions of the prison. Clearly didn’t believe for one second he would be arrested.”

As conspiracy theories circulate regarding SBF’s future, some speculate that he might attempt to bribe his way out of prison. If he is extradited to the U.S. and convicted of all charges, he faces a potential sentence of 115 years.