As the self-proclaimed standard bearer for the crypto industry at large, Mr. Bankman-Fried is diversifying the economy of an island that has long sought to expand beyond tourism, and has been penalized by the drop in visitors caused by the Covid19 pandemic. He helped organize a spring crypto conference that drew hundreds of well-to-do attendees. In Albany, the oceanfront property where he and his associates lived, they were known as generous employers; a delivery driver said he was tipped more than $100 to deliver a modest Burger King order to a cryptocurrency investor there.
In some cases, residents’ attitudes reflect simple empathy. “I feel sorry for him,” said Philip Butler, an elder of Christian Life Church in Nassau.
In congressional testimony this month, FTX’s new CEO, John J. Ray III, accused Bahamian authorities of illegally withdrawing $100 million from the cryptocurrency exchange in the hours before it collapsed. Mr Ray called the process “irregular” and said authorities thwarted his efforts to get answers. The securities regulator for the Bahamas denied that in a statement.
The overall crime rate in the Bahamas is low, but those found guilty often receive long sentences. Fox Hill, where Mr. Bankman-Fried was held, is known locally as “Fox Hell”. It is bursting with 1,400 inmates — 40 percent more than it was built to house — and has limited running water, which often comes out brown, according to former inmates and their families.
The aftermath of FTX’s demise
The sudden collapse of the crypto exchange has stunned the industry.
A former inmate released this year, Sean Hall, said a typical breakfast is grits with sardines scooped up in a moldy cup. Unseasoned minced meat with rice is common for lunch. Dinner is often not delivered at all. Violence was common, by both guards and fellow inmates.
By Fox Hill standards, Mr. Bankman-Fried received royal treatment. He was held in the prison’s medical wing with as many as five inmates in a dormitory under constant surveillance, the administrator said. As a vegan, he had toast and jam for breakfast; for lunches and dinners he had stewed vegetables and other vegetables.
Still, prison conditions weighed on Mr. Bankman-Fried to make a deal with US prosecutors to be extradited to the United States, according to a person who was aware of the talks.
