How Is Former FTX CEO Sam Bankman-Fried (SBF) Faring In Jail?

Former FTX Trading Ltd. CEO Sam Bankman-Fried (SBF) is using mackerel to participate in the jail economy, according to a Nov. 23 Wall Street Journal article. SBF also is giving tips on crypto to the other high-profile inmates he's housed with.

SBF was arrested in early 2023 on money laundering and fraud charges after his crypto exchange FTX became insolvent. Now at Brooklyn's Metropolitan Detention Center, SBF is awaiting sentencing. 

Since the jail he is in banned cigarettes, mackerel has become the top commodity, with inmates trading them in exchange for services or to place bets. With a long history of trading crypto, it is no surprise that SBF has continued this habit in jail. But instead of crypto, he is trading mackerel. 

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SBF recently traded a handful of mackerel for a haircut from another inmate. According to the Brooklyn jail's commissary, a pair of sneakers is $79.95 and an MP3 player is $88.40. A small pouch of mackerel costs $1.30. According to prison consultant Bill Baroni, SBF paid for his haircut with four mackerel pouches. This amounts to $5.20, which is a great price for a haircut, especially with rampant inflation.

Baroni also said that SBF is likely to experience better jail conditions after his sentencing. He will likely be transferred to a less harsh jail and will have more freedom in terms of programs and visitors. 

SBF is housed with several high-profile inmates. Perhaps the most notable is former Honduras President Juan Orlando Hernández, who is awaiting trial on firearms and drug-trafficking charges after he was extradited to the U.S. in 2022. Hernández defense attorney Raymond Colon said SBF and the former Honduras president have spoken at the jail. 

Other notable inmates at the jail include Genaro García Luna, the former secretary of public security in Mexico, as well as a former top Mexican cop. 

SBF is also reportedly advising the jail's guards on crypto. With limited freedom and not much else to do, SBF has begun to talk to the guards about crypto. Though he is unable to trade or follow the markets closely, he can still discuss it and is staying involved. 

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