Federal officials have initiated the process of transferring Sam Bankman-Fried, founder of the FTX cryptocurrency exchange, to a new prison, even though he prefers to stay in New York to help prepare his appeal.

Despite New York's preference for prison transfers

The decision was made to override Bankman-Fried's request, the Wall Street Journal reported today (Wednesday). Bankman-Fried, who was sentenced to 25 years in prison earlier this year on charges related to the collapse of FTX, including allegedly stealing $8 billion from customers, had expressed a desire to remain in New York to assist with the appeals process.

The transfer decision follows Bankman-Fried's conviction by a jury in November on seven counts of fraud and conspiracy following the collapse of FTX in 2022. Prosecutors called the collapse one of the largest financial fraud cases in U.S. history.

A Unified Approach to Resolving Customer Claims

As Finance Magnates reported earlier, FTX has reached a settlement with the liquidators of its Bahamian subsidiary to consolidate assets and create a unified approach to assessing customer claims.

Peter Greaves, the joint official liquidator, said the process was complex and involved overcoming numerous legal and logistical hurdles. This development is particularly important for FTX's extensive customer base in 230 jurisdictions and heralds a collaborative effort in asset monetization and claims resolution that accelerates the return of funds.

Under this agreement, FTX's U.S. team leads asset recovery efforts, including potential transactions involving FTX.com and related intellectual property.Meanwhile, the Bahamian liquidators are focused on divesting local real estate assets and pursuing legal recourse.

FTX Digital Markets is facing bankruptcy in the US due to legal disputes, regulatory issues and liquidator appointments.The Bahamas Securities Commission suspends FTX's registration and access to assets, followed by actions by regulators in Australia, Japan and Cyprus. SCB investigates FTX CEO John Ray for allegedly handling $3.5 billion in customer funds after the exchange's collapse.