Sam Bankman-Fried’s Prison Transfer and Do Kwon’s Extradition Dilemma

Sam Bankman-Fried, the founder of the collapsed FTX exchange sentenced to 25 years, is being moved to a new prison in California, according to The Wall Street Journal, citing sources.

Federal authorities initiated the transfer of inmates from the Brooklyn prison early on May 22, a representative for SBF stated. The spokesperson “could not confirm” the former FTX CEO’s destination, but sources familiar with the situation believe he will be sent to a prison in Mendota.

This move comes weeks after prosecutors recommended transferring Bankman-Fried to a high-security facility in California, near his parents’ home in Palo Alto, the report states.

However, the judge overseeing the process issued an order recommending he remain in the New York prison to “facilitate access to appellate counsel” during the appeal of his sentence.

Given the complexities of the U.S. penitentiary system, the actual transfer of SBF may take over a month.

Discussions on Do Kwon

Montenegrin authorities met with representatives of the U.S. Securities and Exchange Commission (SEC) to discuss the investigation into Terraform Labs founder Do Kwon.

According to a press release, the SEC presented the findings of its investigation and legal proceedings against Kwon to Justice Minister Andrej Milović.

“Representatives of the Commission and the Montenegrin delegation concluded that this meeting represents a significant step towards strengthening relations between the countries in the field of justice and investor protection […]”, the statement reads.

On April 5, a jury in the Southern District of New York found Terraform Labs and Kwon guilty of deceiving investors and securities fraud. The SEC filed a motion seeking $5.3 billion in compensation and fines from the company and its founder.

The dialogue between the two parties likely indicates ongoing discussions about Kwon’s extradition.

In early March, the High Court of Podgorica approved the entrepreneur’s extradition to South Korean authorities. However, the prosecution opposed it, citing procedural violations. Subsequently, the process was overturned.

In South Korea, Kwon faces numerous charges, including violations of capital market laws.

Earlier, it was reported that the co-founder of Terraform Labs will be released from prison after serving his sentence for attempting to cross the border with forged documents.