Sam Bankman-Fried, the convicted co-founder and former head of the collapsed crypto exchange FTX, is now housed in a low-security federal prison in California. This move comes after he spent nearly two weeks at a medium-security institution widely known for inmate violence.
Federal Bureau of Prisons records confirm Bankman-Fried’s relocation to the Federal Correctional Institution Terminal Island in Los Angeles. His previous location, USP Victorville, located about three hours away, carries a grim reputation, often referred to online as “Victimville” due to frequent violence and gang activity.
Terminal Island has previously incarcerated other high-profile individuals convicted of fraud, such as music entrepreneur Mouli Cohen and former stockbroker Anthony Elgindy. The facility reportedly offers inmates access to a law library, alongside wellness programs and vocational training in fields like welding, plumbing, and culinary arts.
This transfer aligns with requests from Bankman-Fried’s legal team. They had argued for placement in a less restrictive environment, citing his lack of previous convictions and an autism diagnosis as mitigating factors. The Bureau of Prisons has not publicly stated its specific reasons for approving the transfer.
The journey for the former crypto billionaire has been tumultuous since his conviction. Before the brief stay at Victorville, Bankman-Fried was held at an Oklahoma transfer center following 18 months at Brooklyn’s Metropolitan Detention Center.
Victorville’s reputation for danger is well-documented. Incidents include inmate-on-inmate murders and assaults on staff. In January 2023, three inmates were convicted of second-degree murder for fatally beating another prisoner there in 2013. Other violent events, including stabbings and assaults on guards, have occurred more recently.
Bankman-Fried received a 25-year prison sentence after a Manhattan jury found him guilty on seven counts related to fraud and conspiracy stemming from the implosion of FTX. His scheduled release date is currently set for December 14, 2044.
Despite the conviction and sentence, reports indicate Bankman-Fried’s parents are exploring possibilities for a presidential pardon, potentially from Donald Trump. This effort echoes attempts by other white-collar defendants following Trump’s past pardons, such as that of Silk Road founder Ross Ulbricht.