The founder of FTX was denied bail by a judge in the Bahamas.
Mr Bankman- Fried was charged with one of the biggest financial frauds in US history.
Gary Gensler said that the ex-FTX boss built a house of cards on a foundation of deception.
Mr Bankman-Fried said that he would fight the US's attempt to extradite him.
JoyAnn Ferguson-Pratt denied the petition for his release on bail, citing a "great" risk of flight, and ordered that he be held at a prison until February.
Many users couldn't withdraw their funds after FTX filed for bankruptcy. According to a court filing, FTX had over $3 billion in debts.
Mr Bankman- Fried is accused of using billions of dollars of customer funds to prop up his investment trading company.
It's not clear how much people with funds in the exchange will get back at the end of their bankruptcies, though many experts warn it may be a small fraction of what they deposited.
There are eight criminal charges against Mr Bankman- Fried in the US. He is accused of misleading investors who invested more than $1 billion into the company.
He's been accused of violating campaign finance laws.
Damian Williams, the US Attorney for the Southern District of New York, described the fraud Mr Bankman- Fried is accused of as one of the largest in US history.
Mr Williams alleged that Mr Bankman-Fried had used ill-gotten gains for illegal campaign contributions to Democrats and Republicans.
The dirty money was used by Bankman-Fried to buy bipartisan influence and impact the direction of public policy in Washington.
The billionaire has admitted to mistakes, but denied intent to cheat his customers.
Mr Bankman- Fried denied that he was aware that FTX's affiliated trading company was using customer funds.
He was once seen as a reincarnation of Warren Buffet. He had a net worth of more than 15 billion dollars.
Sam Bankman- Fried denied knowing that FTX customer money was used for risky financial bets.
FTX's collapse appeared to be the result of a small group of "grossly inexperienced, non-sophisticated individuals", according to the firm's new chief executive.
He said he had seen a lack of record-keeping.
Customers were able to trade normal money for Cryptocurrencies on the FTX exchange.
Cryptocurrencies are not currencies in the traditional sense, but are more like investment vehicles or securities and have a high degree of volatility.
They have been favored for criminal activities because of their anonymity, but their supporters say there is huge potential for innovation.
All Rights Reserved © 2024
