![\"FTX](\"https:\/\/ichef.bbci.co.uk\/news\/240\/cpsprodpb\/5833\/production\/_127997522_02ebdeba3dc570b1a12399ff8d0a4a762a1da85c.jpg.webp)
<\/picture><\/span>REUTERS\/Dante Carrer<\/span><\/div>\n<\/figure>\n<\/div>\nSam Bankman-Fried, founder of the failed cryptocurrency exchange FTX, has been denied bail by a judge in the Bahamas.<\/b><\/p>\n<\/div>\n<\/div>\n US authorities charged Mr Bankman-Fried with “one of the biggest financial frauds in US history” on Tuesday.<\/p>\n<\/div>\n<\/div>\n The ex-FTX boss built a “house of cards on a foundation of deception,” Securities and Exchange Commission (SEC) Chair Gary Gensler said.<\/p>\n<\/div>\n<\/div>\n Mr Bankman-Fried has indicated that he will fight extradition to the US.<\/p>\n<\/div>\n<\/div>\n Bahamas Chief Magistrate JoyAnn Ferguson-Pratt denied the petition for his release on bail, citing a “great” risk of flight, and ordered that he be kept on remand at a correctional facility until 8 February.<\/p>\n<\/div>\n<\/div>\n He was arrested in the Bahamas on Monday. <\/p>\n<\/div>\n<\/div>\n Last month, FTX filed for bankruptcy in the US, leaving many users unable to withdraw their funds. According to a court filing, FTX owed its 50 largest creditors almost $3.1bn (\u00a32.5bn).<\/p>\n<\/div>\n<\/div>\n Among the most serious allegations against Mr Bankman-Fried is that he used billions of dollars of customer funds to prop up his investment trading company, Alameda.<\/p>\n<\/div>\n<\/div>\n It is unclear how much people who have funds in the exchange will get back at the end of bankruptcy proceedings – though many experts have warned it may be a small fraction of what they deposited.<\/p>\n<\/div>\n<\/div>\n Mr Bankman-Fried faces eight criminal charges in the US, including wire fraud, money laundering and conspiracy to defraud. He also faces civil charges including misleading investors who put more than $1bn into the company.<\/p>\n<\/div>\n<\/div>\n Officials have also accused him of violating campaign finance laws. <\/p>\n<\/div>\n<\/div>\n At a news conference on Tuesday, Damian Williams, the US Attorney for the Southern District of New York, described the fraud Mr Bankman-Fried is accused of as among the largest in US history. <\/p>\n<\/div>\n<\/div>\n Besides accusing Mr Bankman-Fried of defrauding lenders, investors and customers, Mr Williams alleged he had used “tens of millions” in ill-gotten gains for illegal campaign contributions to Democrats and Republicans alike. <\/p>\n<\/div>\n<\/div>\n “All this dirty money was used in service of Bankman-Fried’s desire to buy bipartisan influence and impact the direction of public policy in Washington,” Mr Williams said. <\/p>\n<\/div>\n<\/div>\n In previous media interviews, the crypto tycoon has admitted to mistakes, but denied intent to defraud his customers.<\/p>\n<\/div>\n<\/div>\n Mr Bankman-Fried also denied allegations he must have been aware that FTX’s affiliated trading company, Alameda Research, was using FTX customer funds.<\/p>\n<\/div>\n<\/div>\n He was once viewed as a young version of legendary US investor Warren Buffett. As recently as late October, he had a net worth estimated at more than $15bn (\u00a312.1bn).<\/p>\n<\/div>\n<\/div>\n\n