Sam Bankman-Fried, convicted of fraud within the meltdown of FTX, has traded in crypto for a brand new forex: mackerel.
The fallen crypto king, who’s cooling his heels at Brooklyn’s Metropolitan Detention Middle whereas he awaits sentencing for seven felony offenses, has realized the basics of jail economics whereas sharing a dormitory with a former Honduran president awaiting felony trial and a not too long ago convicted former high cop of Mexico, individuals conversant in the matter stated.
Mackerel has changed cigarettes as a well-liked federal jailhouse forex after officers banned smoking, and inmates generally use pouches of the preserved fish bought in a commissary to pay for providers from each other. Bankman-Fried traded some pouches of macks, as they’re identified, to a fellow inmate for a haircut of his signature moptop forward of his trial, one of many individuals stated.
The FTX founder has been in jail since a federal decide revoked his bail in August after discovering possible trigger that he tried to intimidate witnesses, a declare Bankman-Fried denied. Earlier this month, a jury took just a few hours to convict him on costs that he stole billions of {dollars} from FTX prospects whereas defrauding traders and lenders. He’s scheduled to be sentenced March 28, after which he’ll transfer to a federal jail to serve out his sentence.
The Brooklyn detention heart is a far cry from the $30 million penthouse residence within the Bahamas that Bankman-Fried as soon as referred to as dwelling.
He’s allowed non-attorney guests as soon as per week and has entry to a specialised laptop computer that enables him to evaluation authorized materials, the particular person conversant in the matter stated. He and different inmates are allowed to make use of computer systems in a room that has desks separated by plastic dividers, based on the particular person. Whereas Bankman-Fried’s days of investing billions of {dollars} in startups and buying and selling digital tokens are behind him, he has been giving tips about crypto to guards, the particular person stated.
A Federal Bureau of Prisons spokesman stated the bureau couldn’t touch upon the circumstances for any particular person in its custody for privateness and safety causes. The bureau makes each effort to make sure the protection of inmates whereas offering a safe and humane atmosphere, he stated.
“Sam’s doing the most effective he can beneath the circumstances,” Bankman-Fried’s spokesman, Mark Botnick, stated.
On the trial, Bankman-Fried testified that whereas he regretted not having higher risk-management on the crypto alternate, he didn’t commit fraud. His legal professionals have stated Bankman-Fried plans to enchantment the conviction, which might result in a decadeslong jail sentence.
As soon as Bankman-Fried is relocated to a federal jail to serve his sentence, he’ll doubtless have extra freedom of motion, along with higher entry to academic programming and recreation, stated jail marketing consultant Invoice Baroni, a lawyer who was convicted for his function within the New Jersey Bridgegate scandal, during which associates of former Gov. Chris Christie had been accused of making visitors jams for political retribution.
“When he’s sentenced, his life will get higher,” stated Baroni, whose fraud conviction was subsequently thrown out by the Supreme Court docket. “He’ll be out of the power with probably the most violent individuals.”
Different white-collar inmates have served time in services which might be near their households or supply extra programming. Theranos founder Elizabeth Holmes, who was convicted of defrauding traders within the blood-testing firm, is at the moment on the all-female, minimum-security jail camp in Bryan, Texas, positioned between Austin and Houston.
The Brooklyn detention heart has been criticized by protection legal professionals and the union representing jail guards for poor circumstances and being severely understaffed for years. The Federal Bureau of Prisons spokesman stated that sustaining absolutely staffed establishments is a key precedence for the bureau.
Folks conversant in the matter say Bankman-Fried’s unit mates embody Genaro García Luna, Mexico’s former secretary of public safety who was convicted earlier this 12 months of serving to the highly effective Sinaloa cartel smuggle greater than 50 tons of cocaine into the U.S. García Luna is awaiting sentencing.
One other unit inmate is former Honduras President Juan Orlando Hernández, who’s awaiting trial on federal drug-trafficking and firearms costs. Hernández pleaded not responsible after being extradited to the U.S. in 2022.
Hernández’s protection lawyer, Raymond Colon, stated his consumer and Bankman-Fried have had cordial conversations with each other on the jail. Colon stated staffing shortages can result in canceled visiting hours, however Hernández usually doesn’t complain in regards to the circumstances.
“It’s definitely not a resort,” Colon stated.
Bankman-Fried initially subsisted on peanut butter, bread and water as a result of the jail wasn’t accommodating his vegan weight-reduction plan, one in every of his legal professionals stated in a court docket look in late August. He additionally had hassle getting his correct dosage of prescribed Adderall, the lawyer stated.
His entry to meals and medicine—which he takes for attention-deficit hyperactivity dysfunction—have since been resolved. He receives vegetarian meals on the jail, an individual conversant in the matter stated.
Inmates on the detention heart are sometimes confined to their unit, and don’t transfer freely across the facility. As an alternative of consuming in a communal cafeteria, as at some prisons, meals are delivered to particular person items, stated Christine Dynan, a jail marketing consultant who beforehand labored on the heart and different federal services.
Many inmates choose to buy meals, in addition to garments and toiletries, by the Brooklyn jail’s commissary. An inventory of commissary gadgets exhibits that peanut butter prices $4.15, a pair of sneakers are $79.95 and an MP3 participant is $88.40. A pouch of mackerel fillets prices $1.30, up 30% from $1 in 2020.
Baroni, the jail marketing consultant, stated that when Bankman-Fried strikes to a federal jail he’ll doubtless deliver his mackerel packets with him. Baroni stated he paid 4 macks for his personal haircut whereas in jail.
“The mack forex system is way extra steady than crypto,” he stated.
Write to James Fanelli at james.fanelli@wsj.com and Corinne Ramey at corinne.ramey@wsj.com
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