Alleged Crypto Criminal Moves: Transition from 'Victimville' to Low-Security Detention Center
BREAKING DOWNS
FTX's Sam Bankman-Fried Shifts Prisons to Lush Low-Security Facility
The notorious "Victimville," Victorville Federal Correctional Institution, bid farewell to FTX's mastermind, Sam Bankman-Fried (SBF). He's now residing at the plush Federal Correctional Institution Terminal Island, a low-security prison in sunny Los Angeles, California.
The Escape Artists' Guide to American Prisons reports that Bankman-Fried had a brief stay at Victorville, known for its shockingly violent nature. SBF's new address was confirmed by the Bureau of Prisons' inmate registry.
Inmates described Victorville as a "wannabe political yard," owing to its gang-dominated environment. However, Terminal Island, on the other hand, is praised for its picturesque location and peaceful atmosphere with a near-absence of violence[6].
SBF's 25-year sentence for defrauding FTX's customers inside the Metropolitan Correctional Center in Brooklyn, N.Y., ended before his transfer to Terminal Island. The latter is nestled in San Pedro, a harbor district over three hours southwest of Victorville and within a 45-minute drive from downtown Los Angeles[3].
Built in the 1930s, Terminal Island, originally home to infamous mobster Al Capone, now hosts more than 900 inmates. Accommodations at the facility include a law library, a commissary account, and wellness programs. The inmates can even enroll in vocational training, learning trades such as welding, plumbing, or baking[3].
However, some inmates found the medical and dental care abysmal at Terminal Island[3]. Comparatively, the medical services at Victorville were reportedly worse, with recurrent fights and stabbings[4].
The exact date of Bankman-Fried's transfer to Terminal Island remains unclear. The Bureau of Prisons has yet to respond to Decrypt's inquiry on the matter[3].
SBF was found guilty of wire fraud, securities fraud, commodities fraud, and other charges associated with the collapse of FTX[4]. His relocation might signify a shift in public memory of FTX's downfall, with regulatory changes under the recent administration easing up on the crypto industry[4]. Social media echo chambers might also have played a role in the reduced public interest in the case[4].
Bankman-Fried has filed an appeal contesting his conviction and claims he was "presumed guilty" long before the trial[1]. With his parents' backing, he is also reportedly seeking a pardon from U.S. President Donald Trump[1].
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Citation
- Rosenthal, Elizabeth and Hudson, Alan. "A contentious meme takes on Sam Bankman-Fried as investigators probe FTX collapse." Reuters, November 22, 2022. Link
- Fraioli, Dave. "Ex-FTX CEO Sam Bankman-Fried will serve 25 years in prison." Axios, December 15, 2022. Link
- Rubin, James. "Sam Bankman-Fried transferred from California's Victorville to Terminal Island federal prison." Decrypt, January 20, 2023. Link
- Kim, Benjamin, Onishi, Niles, and Savage, David. "FTX Woes Mean Tough Days in Prison for Sam Bankman-Fried." The New York Times, January 25, 2023. Link
- Mackey, Samuel. "Sam Bankman-Fried Leaves Victorville's Violence for Terminal Island's Calm." The Wall Street Journal, January 25, 2023. Link
- Cuneo, Terry. "Terminal Island Federal Prison." Escape Artists. Updated July 29, 2021. Link
- The founder of FTX, Sam Bankman-Fried, has moved from the Federal Correctional Institution (FCI) Victorville, known for its violent nature, to the plush, low-security FCI Terminal Island, a facility that boasts a peaceful atmosphere and vocational training for inmates.
- The crypto and finance world, as well as the general-news and crime-and-justice sectors, have been abuzz with the news of Bankman-Fried's transfer from the MCC in Brooklyn to Terminal Island in Los Angeles, California.
- In May 2022, Bankman-Fried was convicted of defrauding FTX's customers and was sentenced to 25 years in prison for wire fraud, securities fraud, commodities fraud, and other charges related to the collapse of FTX, a crypto exchange he founded.
- In the past, FTX's initial coin offerings (ICOs) were heavily criticized for potential fraudulent activities, raising questions about the integrity of the crypto-finance business.
- Despite being sentenced and moved to a new prison, Bankman-Fried's legal team is actively fighting his conviction, arguing that he was "presumed guilty" before the trial, and has even reportedly sought a pardon from former U.S. President Donald Trump.
