FTX founder Bankman-Fried's bail application dismissed

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FTX founder Bankman-Fried: Eight counts, 115 years in prison

Photo: DANTE CARRER / REUTERS

The founder and former boss of the now bankrupt crypto exchange FTX, Sam Bankman-Fried, who was arrested on suspicion of fraud, will not be released until the start of the trial because of the risk of absconding.

A judge in the Bahamas on Tuesday refused to post bail for Bankman-Fried and instead sent him to a local correctional facility.

Bankman-Fried, who was arrested in the Bahamas the day before, bowed his head and hugged his parents after the judge denied bail on the grounds.

Reason: There is a "great" risk of absconding.

Bankman-Fried will await the start of the trial on February 8 in a correctional facility in the island state, where he will initially be housed in the medical ward.

The 30-year-old faces up to 115 years in prison if convicted on all eight counts.

Prosecutors and authorities in the US had previously filed lawsuits against Bankman-Fried.

Bankman-Fried had apologized to customers, but had previously rejected allegations of fraud.

The collapse of FTX has rocked the crypto world.

mike/Reuters