A woman from Boston died after she was attacked by a shark while paddle boarding with a family member in the Bahamas on Monday, police said at a news conference broadcast by Reuters The woman and male relative were paddle boarding at a resort about three-quarters of a mile away from the shore when she was bitten by the shark, said Royal Bahamas Police Force Spokesperson Sergeant Desiree Ferguson.
A lifeguard on duty who saw the incident went out in a boat to rescue the pair, Ferguson said.
“CPR was administered to the victim. However, she suffered serious injuries to the right side of her body, including the right hip region and also her right upper limb,” Ferguson said.
Mortuary services personnel transport the body of a female tourist after what police described as a fatal shark attack in waters near Sandals Royal Bahamian resort, in Nassau, Bahamas December 4, 2023.
DANTE CARRER / REUTERS
The victim, who was not identified, was declared dead after emergency responders determined she showed no vital signs.
CBS News has reached out to the Royal Bahamas Police Force for more information and is awaiting response. CBS News has also reached out to several witnesses from the U.S. who claimed on Facebook they saw the aftermath of the attack.
The attack comes just one day after a 26-year-old woman died after she was bitten by a shark in Mexico as she swam with her young daughter.
Shark attacks are rare in the Bahamas, but several have been reported in recent months.
Last month, a 47-year-old German woman went missing during a diving trip off West End, Grand Bahama, after encountering a shark, Reuters reported, citing police.
In June, a woman from Iowa was attacked by a shark while scuba diving in the Bahamas, resulting in her leg being amputated.
In September 2022, another tourist from the U.S. was killed by a shark in the Bahamas while snorkeling. The 58-year-old woman from Pennsylvania was a passenger on the Harmony of the Seas cruise ship and was taking part in an excursion at a popular spot near Green Cay when she was attacked by a bull shark. She was transported to a local hospital, where she died.
More than 50 species of sharks are found along the East Coast and in the Caribbean Sea, including tiger, hammerhead and Caribbean reef sharks, according to NOAA.
Born in Toronto, singer-songwriter Bahamas has been a hit with fans and critics. He is the winner of 5 Juno Awards, the Canadian equivalent of the Grammy. From his sixth studio album “Bootcut,” here is Bahamas with “I’m Still.”
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Born in Toronto, singer-songwriter Bahamas has been a hit with fans and critics. His first three albums were nominated for the Juno Award, the Canadian equivalent of the Grammy. From his sixth studio album “Boot Cut,” here is Bahamas with “Working on My Guitar.”
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Born in Toronto, singer-songwriter Bahamas has been a hit with fans and critics. His first three albums were nominated for the Juno Award, the Canadian equivalent of the Grammy. From his sixth studio album “Boot Cut,” here is Bahamas with “Nothing Blows My Mind.”
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Sam Bankman-Fried’s former top executive for his crypto hedge fund says the collapse of FTX left her feeling “relief that I didn’t have to lie anymore.”
In emotional testimony in Manhattan federal court on Wednesday, Caroline Ellison blamed Bankman-Fried for crafting justifications for conduct that was wrong and illegal.
Ellison, the former CEO of Alameda Research, recalled Bankman-Fried’s contention that he wanted to do the greatest good for the most people, and that edicts such as “don’t lie” or “don’t steal” had to be ignored at times.
Testifying for a second day, Ellison said she thought her onetime romantic partner’s philosophy made her “more willing to do things like lie and steal over time.”
After several hours on the witness stand, Ellison got choked up as she described the final days of FTX and Alameda, saying that the early November period before the businesses filed for bankruptcy “was overall the worst week of my life.”
Ellison said she felt bad for “all the people harmed” when there wasn’t enough money left for all of FTX’s customers and Alameda’s lenders.
When the collapse happened, Ellison said it left her with a “sense of relief that I didn’t have to lie anymore.”
Balancing Act
Earlier in her testimony, Ellison disclosed she changed balance sheets to try to hide that Alameda was borrowing about $10 billion from FTX customers in June 2022, when the cryptocurrency market was plummeting and some lenders were calling on Alameda to return their money.
Ellison at one point said she had created seven different balance sheets after Bankman-Fried told her to figure out ways to cover up things that might cast a negative light on Alameda’s operations.
“I didn’t really want to be dishonest, but I also didn’t want them to know the truth,” the 28-year-old said.
Ellison said in years past, she never would have thought she’d be sending phony balance sheets to lenders or misallocating customer money, “but I think it became something I became more comfortable with as I was working there.”
Ellison said she dreaded what would occur if customer withdrawals from FTX couldn’t be covered or that what they had done would become public.
“In June 2022, we were in the bad situation and I was concerned that if anybody found out, it would all come crashing down,” she said.
That crash came last November, when FTX couldn’t fulfill a rush of customer withdrawals, forcing it into bankruptcy and prompting investigations by prosecutors and regulators.
Bankman-Fried, 31, has pleaded not guilty to fraud charges. His lawyers argue he was not criminally responsible for the demise of his businesses.
Initially confined to his parents’ Palo Alto, California, home under terms of a $250 million bond, Bankman-Fried has been jailed since August after Judge Lewis A. Kaplan concluded that he had tried to improperly influence potential witnesses, including Ellison.
The son of Stanford University law professors, Bankman-Fried is accused of funneling billions of dollars from FTX to Alameda, allegedly using as much as $10 billion in customer deposits to cover luxury real estate purchases and large political donations. He faces a potential prison term of more than a century if convicted of federal fraud and money-laundering charges.
Spanish prosecutors have charged pop star Shakira with failing to pay $7.1 million in tax on her 2018 income, authorities said Tuesday, in Spain’s latest fiscal allegations against the Colombian singer.
Shakira is alleged to have used an offshore company based in a tax haven to avoid paying the tax, Barcelona prosecutors said in a statement.
She has been notified of the charges in Miami, where she lives, according to the statement.
Shakira is already due to be tried in Barcelona on Nov. 20 in a separate case that hinges on where she lived between 2012-14. In that case, prosecutors allege she failed to pay $15.4 million in tax.
Prosecutors in Barcelona have alleged the Grammy winner spent more than half of the 2012-2014 period in Spain, and therefore should have paid taxes in the country, even though her official residence was in the Bahamas.
Spanish tax officials opened the latest case against Shakira last July. After reviewing the evidence gathered over the last two months, prosecutors have decided to bring charges. No date for a trial was set.
The public relations firm that previously has handled Shakira’s affairs, Llorente y Cuenca, made no immediate comment.
Last July, it said the artist had “always acted in concordance with the law and on the advice of her financial advisers.”
Shakira, whose full name is Shakira Isabel Mebarak Ripoll, has been linked to Spain since she started dating the now-retired soccer player Gerard Pique. The couple, who have two children, lived together in Barcelona until last year, when they ended their 11-year relationship.
Spain tax authorities have over the past decade or so cracked down on soccer stars like Lionel Messi and Cristiano Ronaldo for not paying their full due in taxes. Those players were found guilty of tax evasion but avoided prison time thanks to a provision that allows a judge to waive sentences under two years in length for first-time offenders.
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The waterfront sanctuary inside Paradise Island’s exclusive Ocean Club Estates community combines … [+] meticulous craftsmanship with fantastic harbor views.
MAISON Bahamas
Paradise Island has earned its name. Clear turquoise waters, white-sand beaches and a resort vibe define the island in the Bahamas connected to the capital city of Nassau by two bridges.
Paradise Island in the Bahamas boasts clear turquoise waters and white-sand beaches.
MAISON Bahamas
An elite gated community on the island’s easternmost tip adds a layer of luxury and privacy—and an opportunity to own a tropical retreat. Now a six-bedroom home in 7,500 square feet at 76 Island End is on the market for $8 million. It’s located inside the private Ocean Club Estates, which includes 122 single-family homes and 88 condominiums.
The island’s easternmost tip houses an elite gated community for luxury and privacy.
MAISON Bahamas
The house, built in 2007, possesses a simple open-plan design that blends in with the island’s simple beauty. Inside, soft beige walls with view windows point toward water and palm trees. Even the primary bathroom with a large soak tub offers views of the harbor. The light tan exterior presents a stylized, contemporary take on traditional Bahamian architecture.
Built in 2007, the house showcases an open-plan design that mirrors the island’s natural beauty.
MAISON Bahamas
The living room looks out over the water as well as a large, rounded infinity pool that’s just steps away. A formal dining area and kitchen with stone counter and casual seating are located nearby. Bedrooms fan out from the main floor and are positioned at 45-degree angles to take full advantage of outdoor views.
The interior features earthy materials such as limestone floors, Brazilian Ipe wood, and Tunisian … [+] mosaics.
MAISON Bahamas
Earth tones inside are reflected in the choice of materials, which include limestone floors, Brazilian Ipe wood and handcrafted Tunisian mosaics.
The home was strategically designed with the views in mind.
MAISON Bahamas
Outside, a wide deck attached to the house offers sunrise and sunset views. The home also has a private dock for boats.
High ceilings and polished surfaces draw the eyes in the kitchen.
MAISON Bahamas
“The ideal buyer for this home is a boating enthusiast who owns or plans to own a luxury yacht,” says listing agent Ryan Knowles of Maison Bahamas. “It’s someone who appreciates having resort-style amenities at their fingertips in a luxurious tropical setting while still being accessible to a number of major international cities.”
A six-bedroom house at 76 Island End offers 7,500 square feet of living space.
MAISON Bahamas
Residents of Ocean Club Estates have access to a private beach along the north shore of the island, a Tom Weiskopf-designed golf course, sports facilities and courts, swimming pools and water slides and other amenities at the nearby Four Seasons hotel.
The house offers resort-like amenities in a tropical setting with accessibility to major cities.
MAISON Bahamas
The community also is close to restaurants and nightlife at the One & Only Ocean Club Resort and the Atlantis Resort & Casino on the island.
Jane Pauley hosts our “Money Issue.” In our cover story, David Pogue dramatizes how online or phone scams are costing us billions. Also: Mo Rocca looks at ways to cut the glut of meetings; Martha Teichner finds out how a charity is cancelling billions of dollars’ worth of Americans’ medical debt; Tracy Smith sits down with actress Donna Mills; Christina Ruffini looks at entire towns that are looking for buyers; Lucy Craft explores companies in Japan that are more than a century old; Seth Doane visits greenhouses that are transforming the deserts of southern Spain; Lee Cowan meets a man hunting for a Spanish galleon’s treasure in the Bahamas; Rita Braver looks at ways retailers are combatting shoplifters; and Luke Burbank checks out online sales of caskets. (Portions of this broadcast originally aired April 16, 2023.)
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The accident involving a tourist sub that killed all five people on the vessel is raising questions about the rules governing deep-sea exploration. It’s a space on the high seas where laws and conventions can be sidestepped by risk-taking entrepreneurs and the wealthy tourists who help fund their dreams.
“We’re at a point in submersible operations in deep water that’s kind of akin to where aviation was in the early 20th century,” said Salvatore Mercogliano, a history professor at Campbell University in North Carolina who focuses on maritime history and policy.
“Aviation was in its infancy, and it took accidents for decisions to be made to be put into laws,” Mercogliano said. “There’ll be a time when you won’t think twice about getting on a submersible and going down 13,000 feet. But we’re not there yet.”
Thursday’s announcement by the U.S. Coast Guard that the Titan had imploded near the Titanic shipwreck has drawn attention to how these expeditions are regulated.
Mercogliano said such operations are scrutinized less than the companies that launch people into space. In the Titan’s case, that’s in part because it operated in international waters, far from the reach of many laws of the U.S. or other nations.
The Titan wasn’t registered as a U.S. vessel or with international agencies that regulate safety, Mercogliano added. Nor was it classified by a maritime industry group that sets standards on matters such as hull construction.
Stockton Rush, the OceanGate CEO who died on Titan, had said he didn’t want to be bogged down by such standards. “Bringing an outside entity up to speed on every innovation before it is put into real-world testing is anathema to rapid innovation,” he wrote in a blog post on his company’s website.
The Titan was a small vessel that was launched from another ship, the Canadian icebreaker Polar Prince, a setup that Mercogliano likened to pulling a boat on a trailer, in terms of regulatory purposes.
“The highway patrol has jurisdiction over the car and over the trailer, but not over the boat,” he said. “The boat is cargo.”
Experts say wrongful death and negligence lawsuits are likely in the Titan case — and they could be successful. But legal actions will face various challenges, including waivers signed by the Titan passengers that warned of the myriad ways they could die.
Waiver could make it hard to sue
Mike Reiss, a writer for “The Simpsons” television show who went on a Titanic expedition with OceanGate in 2022, recalled that his waiver said he would be “subject to extreme pressure. And any failure of the vessel could cause severe injury or death.”
“I will be exposed to risks associated with high pressure gases, pure oxygen, high voltage systems which could lead to injury, disability and death,” Reiss said Thursday, going by memory. “If I am injured, I may not receive immediate medical attention.”
Thomas Schoenbaum, a University of Washington law professor and author of the book “Admiralty and Maritime Law,” said such documents may be upheld in court if they are worded well.
“If those waivers are good, and I imagine they probably are because a lawyer probably drafted them, (families) may not be able to recover damages.”
At the same time, OceanGate could still face repercussions under the Passenger Vessel Safety Act of 1993, Schoenbaum said. But it may depend on which arm of OceanGate owned the Titan submersible.
Rush, the late OceanGate CEO, told AP in 2021 that it was an American company. But he said OceanGate Expeditions, which led dives to the Titanic, was based in the Bahamas.
Schoenbaum said the Bahamas subsidiary has the potential to circumvent U.S. law, but courts have at times “pierced the corporate veil” and OceanGate could be found liable.
Guillermo Söhnlein, who co-founded OceanGate in 2009 before leaving the company four years later, told Reuters on Friday that Rush was highly focused on safety.
“Stockton was one of the most astute risk managers I’d ever met. He was very risk-averse. He was very keenly aware of the risks of operating in the deep ocean environment, and he was very committed to safety,” Söhnlein told the wire service.
Meanwhile, there are questions of whether the Titan was insured or if the Canadian icebreaker’s insurance could come into play.
The countries where lawsuits may be filed could also depend on contracts signed by passengers and crew.
“I would be very surprised, in a high-risk operation like this, if the contract did not address which law applies and where any claim can be filed,” said George Rutherglen, a professor of admiralty law at the University of Virginia.
Need for stronger rules?
In the meantime, Rutherglen said, he expects the U.S. will respond with tighter regulations given the loss of life and the millions of dollars spent by the Coast Guard.
“These wrecks at the bottom of the sea have become more accessible with advancing technology,” Rutherglen said. “It doesn’t mean that it’s necessarily become safer to go down and take a look.”
The International Maritime Organization, which regulates commercial shipping, could take some kind of action, he added, and Congress also could pass legislation. Nations such as the U.S. could, for example, block ships engaging in such expeditions from docking in their ports.
“I would just be surprised if any incident with all of these costs involved — wrongful death, expensive rescue — would not lead to some initiatives,” he said.
But not everyone agrees. Forrest Booth, a San Francisco-based partner at Kennedys Law, said the International Maritime Organization “has no authority to impose its will.”
“There could be a move for states to adopt an international treaty on the deep ocean,” Booth said via email. “But that will be resisted by some nations that want to do deep-sea mining, etc. I do not think much of substance will happen after the media attention of this event dies down.”
FTX founder Sam Bankman-Fried asked a New York federal judge on Monday night to dismiss most criminal charges brought against him by federal prosecutors following the sudden collapse of his cryptocurrency exchange last year.
A Delta Airlines flight forced to returne to John F. Kennedy International Airport after reportedly striking a bird en route to the Bahamas on Wednesday is once again on its way.
The incident was first confirmed by the Federal Aviation Administration, which said they will investigate. The Delta flight left the airport at around 9 a.m., but returned to the airport around 9:45 a.m. after the reported bird strike.
Shortly before noon, Delta told CBS News that the aircraft was “currently en route” to the Lynden Pindling International Airport in Nassau again after the aircraft was examined.
There were 165 passengers aboard, plus two pilots and four flight attendants, Delta said.
Delta said in a statement that the Boeing 737 “encountered birds following departure.” It’s not clear how many birds were involved in the incident or what kind of birds they were.
“We apologize to our customers for the resulting delay in their travel plans,” Delta said in a statement.
According to the FAA, wildlife strikes with aircraft are increasing around the world. In the United States, there have been about 255,000 wildlife strikes reported from 1990 to 2021. The FAA estimates that in that window, wildlife strikes cost airlines about $900 million due to the damage done to aircraft. However, the agency said that losses could be as high as $500 million per year when accounting for the estimated number of unreported strikes and strikes where costs were not provided by the airlines.
About a third of such incidents occur in the early stages of flight, when the plane is taking off or ascending, with another 61% taking place during the landing phases and just 3% occurring while the plane is in its “en route phase,” the FAA said.
While such strikes can cause injury to human passengers, it is rare: The FAA said that from 1990 to 2019, there were 327 injuries attributed to wildlife strikes on U.S. aircraft. From 1988 to 2019, there were 292 deaths reported globally.
There were no fatalities in one of the most famous cases of wildlife strike — 2009’s so-called Miracle on the Hudson, when a U.S. Airways flight was forced to land in the Hudson River after hitting a flock of Canada geese while taking off from New York’s LaGuardia Airport, which injured 95 of the 155 people on board.
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Seventeen migrants were taken onboard a Royal Caribbean cruise ship Saturday after it encountered a small vessel adrift on its way to the Bahamas, according to a statement from the cruise line.
The Liberty of the Seas was sailing to the Bahamas when it encountered a small vessel adrift and in need of assistance, according to Royal Caribbean officials.
“The ship’s crew immediately launched a rescue operation, safely bringing 17 people onboard. The crew provided them with medical attention and is working closely with the United States Coast Guard,” the statement said.
RacQuelle Major-Holland, a passenger on the cruise liner, told CNN the captain made an announcement their ship was diverting from its path to Nassau to see whether the small boat needed help.
“He shared there appeared to be people onboard and he mentioned the maritime law that ships have to check in and rescue if needed,” Major-Holland said Monday.
She said the small boat was hard to see at first but within about 45 minutes of the announcement, the people were onboard the Liberty of the Seas.
“The individuals on the boat were waving and … they were smiling and happy to be rescued,” said Major-Holland, a travel blogger from Pickerington, Ohio.
Video that Major-Holland recorded shows the boat getting closer to the ship. The tiny craft has just a few oars and a piece of tattered green fabric from what appears to be a makeshift flagpole.
Officials didn’t identify what country the people in the boat were from, but the rescue comes during a surge of Cubans and Haitians attempting to make it to the United States.
It isn’t new for cruise ships traveling near Florida to come upon boats of migrants. But a series of recent rescues and social media posts about them have brought a fresh wave of attention to these dramatic moments at sea and the migration crisis behind them.
The small boat in this case was in Bahamian waters and the people onboard reported there was another vessel out as well, a spokesperson from the US Coast Guard District Seven told CNN.
Because of the location of the vessels, the Bahamian authorities are leading the investigation with assistance from the Coast Guard.
CNN has reached out to the Bahamian Defense Force for additional information.
Sam Bankman-Fried, the former billionaire facing a litany of criminal charges for alleged fraud in his now-bankrupt exchange FTX and the now-defunct trading firm Alameda Research, made his first public comments of 2023 on Thursday.
Sam Bankman-Fried pleaded not guilty Tuesday to charges related to the collapse of his crypto empire, according to reporters present at his arraignment hearing in a New York federal court Tuesday.
NEW YORK (AP) — A judge kept secret that two of Sam Bankman-Fried’s closest associates had turned against him so the cryptocurrency entrepreneur wouldn’t get spooked and fight extradition from the Bahamas, according to court transcripts made public Friday.
U.S. prosecutors in New York waited until Bankman-Fried, the founder of the collapsed crypto exchange FTX, was in FBI custody before revealing that his business partners, Carolyn Ellison and Gary Wang, had secretly pleaded guilty to fraud charges and were cooperating, which can earn them leniency at sentencing.
U.S. Attorney Damian Williams announced the guilty pleas when Bankman-Fried was in the air late Wednesday.
Prosecutors had been concerned that if Bankman-Fried found out his friends were cooperating, he might try to fight extradition from the Bahamas, where he had been arrested at the request of U.S. authorities.
Ellison, 28, and Wang, 29, entered their guilty pleas in Manhattan federal court Monday to charges that carry a potential penalty of decades in prison.
At that hearing, Assistant U.S. Attorney Danielle Sassoon told the judge prosecutors had expected Bankman-Fried to consent to extradition Monday before there were “some hiccups in the Bahamian courtroom.”
“We’re still expecting extradition soon, but given that he has not yet entered his consent, we think it could potentially thwart our law enforcement objectives to extradite him if Ms. Ellison’s cooperation were disclosed at this time,” Sassoon told U.S. District Judge Ronnie Abrams.
The judge got assurance from Ellison’s lawyer that there was no objection to the request before granting it.
“Exposure of cooperation could hinder law enforcement officials’ ability to continue the ongoing investigation and, in addition, may affect Mr. Bankman-Fried’s decision to waive extradition in this case,” Abrams said.
The home where he was staying was protected Friday by heightened security, including a Stanford University security guard posted about 50 yards (46 meters) from the home to keep passersby away. The school’s president lives nearby.
Late Friday, Abrams recused herself from presiding over the case, saying she had learned that the law firm Davis Polk & Wardwell LLP, where her husband is a partner, had advised FTX in 2021 and had represented parties that may be adverse to FTX and Bankman-Fried in other proceedings.
She said her husband has had no involvement in any of the representations and she has no knowledge of the confidential matters, but decided to recuse herself “to avoid any possible conflict, or the appearance of one.”
Ellison is the former chief executive of Bankman-Fried’s cryptocurrency hedge fund trading firm, Alameda Research. Wang co-founded FTX, the crypto exchange. Both agreed to testify at Bankman-Fried’s trial.
They and Bankman-Fried are accused of defrauding customers and investors by illegally diverting massive sums of customer money from FTX to make lavish real estate purchases, donate money to politicians and make risky trades at Alameda.
In court Monday, Ellison said since FTX and Alameda collapsed in November, she has “worked hard to assist with the recovery of assets for the benefit of customers and to cooperate with the government’s investigation.”
“I am truly sorry for what I did. I knew that it was wrong. And I want to apologize for my actions to the affected customers of FTX, lenders to Alameda and investors in FTX,” she said, according to a transcript.
Ellison said she was aware from 2019 through 2022 that Alameda was given access to a borrowing facility at FTX.com that allowed Alameda to maintain negative balances in various currencies.
She said the practical effect of the arrangement was that Alameda had access to an unlimited line of credit without being required to post collateral and without owing interest on negative balances or being subject to margin calls or liquidation protocols.
Ellison said she knew that if Alameda’s FTX accounts had significant negative balances in any currency, it meant that Alameda was borrowing funds that FTX’s customers had deposited into the exchange.
“While I was co-CEO and then CEO, I understood that Alameda had made numerous large illiquid venture investments and had lent money to Mr. Bankman-Fried and other FTX executives,” she said.
Ellison said she understood that Alameda had financed the investments with short-term and open-term loans worth several billion dollars from external lenders in the cryptocurrency industry.
When many of those loans were recalled by lenders in June, she agreed with others to borrow several billion dollars from FTX to repay them.
“I understood that FTX would need to use customer funds to finance its loans to Alameda,” she said. “I also understood that many FTX customers invested in crypto derivatives and that most FTX customers did not expect that FTX would lend out their digital asset holdings and … deposits to Alameda in this fashion.”
From July to October, Ellison said, she agreed with Bankman-Fried and others to provide misleading financial statements to Alameda’s lenders, including quarterly balance sheets that concealed the extent of the company’s borrowing and the billions of dollars in loans it had made to FTX executives and others.
“I agreed with Mr. Bankman-Fried and others not to publicly disclose the true nature of the relationship between Alameda and FTX, including Alameda’s credit arrangement,” Ellison said.
During his plea earlier Monday, Wang said that he made changes to computer code to enable the transactions with Alameda.
“I knew what I was doing was wrong,” he said.
___
Associated Press Writer Michael Liedtke in Palo Alto contributed to this report.
NEW YORK — A judge kept secret that two of Sam Bankman-Fried’s closest associates had turned against him so the cryptocurrency entrepreneur wouldn’t get spooked and fight extradition from the Bahamas, according to court transcripts made public Friday.
U.S. prosecutors in New York waited until Bankman-Fried, the founder of the collapsed crypto exchange FTX, was in FBI custody before revealing that his business partners, Carolyn Ellison and Gary Wang, had secretly pleaded guilty to fraud charges and were cooperating in the investigation, which can earn them leniency at sentencing.
U.S. Attorney Damian Williams announced the guilty pleas when Bankman-Fried was in the air late Wednesday.
Prosecutors had been concerned that if Bankman-Fried found out his friends were cooperating, he might try to fight extradition from the Bahamas, where he had been arrested at the request of U.S. authorities.
Ellison, 28, and Wang, 29, entered their guilty pleas in Manhattan federal court Monday to charges that carry a potential penalty of decades in prison.
At that hearing, Assistant U.S. Attorney Danielle Sassoon told the judge prosecutors had expected Bankman-Fried to consent to extradition Monday before there were “some hiccups in the Bahamian courtroom.”
“We’re still expecting extradition soon, but given that he has not yet entered his consent, we think it could potentially thwart our law enforcement objectives to extradite him if Ms. Ellison’s cooperation were disclosed at this time,” Sassoon told U.S. District Judge Ronnie Abrams.
The judge got assurance from Ellison’s lawyer that there was no objection to the request before granting it.
“Exposure of cooperation could hinder law enforcement officials’ ability to continue the ongoing investigation and, in addition, may affect Mr. Bankman-Fried’s decision to waive extradition in this case,” Abrams said.
Bankman-Fried, 30, appeared in court in New York on Thursday. He was released on the condition that he live under house arrest with his parents in Palo Alto, California, while awaiting trial.
The home where he was staying was protected Friday by heightened security, including a Stanford University security guard posted about 50 yards (46 meters) from the home to keep passersby away. The school’s president lives nearby.
Ellison is the former chief executive of Bankman-Fried’s cryptocurrency hedge fund trading firm, Alameda Research. Wang co-founded FTX, the crypto exchange. Both agreed to testify at Bankman-Fried’s trial.
They and Bankman-Fried are accused of defrauding customers and investors by illegally diverting massive sums of customer money from FTX to make lavish real estate purchases, donate money to politicians and make risky trades at Alameda.
In court Monday, Ellison said since FTX and Alameda collapsed in November, she has “worked hard to assist with the recovery of assets for the benefit of customers and to cooperate with the government’s investigation.”
“I am truly sorry for what I did. I knew that it was wrong. And I want to apologize for my actions to the affected customers of FTX, lenders to Alameda and investors in FTX,” she said, according to a transcript.
Ellison said she was aware from 2019 through 2022 that Alameda was given access to a borrowing facility at FTX.com that allowed Alameda to maintain negative balances in various currencies.
She said the practical effect of the arrangement was that Alameda had access to an unlimited line of credit without being required to post collateral and without owing interest on negative balances or being subject to margin calls or liquidation protocols.
Ellison said she knew that if Alameda’s FTX accounts had significant negative balances in any currency, it meant that Alameda was borrowing funds that FTX’s customers had deposited into the exchange.
“While I was co-CEO and then CEO, I understood that Alameda had made numerous large illiquid venture investments and had lent money to Mr. Bankman-Fried and other FTX executives,” she said.
Ellison said she understood that Alameda had financed the investments with short-term and open-term loans worth several billion dollars from external lenders in the cryptocurrency industry.
When many of those loans were recalled by lenders in June, she agreed with others to borrow several billion dollars from FTX to repay them.
“I understood that FTX would need to use customer funds to finance its loans to Alameda,” she said. “I also understood that many FTX customers invested in crypto derivatives and that most FTX customers did not expect that FTX would lend out their digital asset holdings and … deposits to Alameda in this fashion.”
From July to October, Ellison said, she agreed with Bankman-Fried and others to provide misleading financial statements to Alameda’s lenders, including quarterly balance sheets that concealed the extent of the company’s borrowing and the billions of dollars in loans it had made to FTX executives and others.
“I agreed with Mr. Bankman-Fried and others not to publicly disclose the true nature of the relationship between Alameda and FTX, including Alameda’s credit arrangement,” Ellison said.
During his plea earlier Monday, Wang said that he made changes to computer code to enable the transactions with Alameda.
“I knew what I was doing was wrong,” he said.
———
Associated Press Writer Michael Liedtke in Palo Alto contributed to this report.
NEW YORK — A judge agreed to a request by prosecutors to keep it secret that two of Sam Bankman-Fried’s executive associates had turned against him so that the cryptocurrency entrepreneur would agree not to fight extradition from the Bahamas to the United States, according to transcripts of plea deals made public Friday.
U.S. District Judge Ronnie Abrams said during plea proceedings Monday in Manhattan that transcripts of the pleas could remain sealed until Bankman-Fried reached New York.
U.S. Attorney Damian Williams announced the guilty pleas and cooperation deals by Carolyn Ellison, 28, and Gary Wang, 29, while Bankman-Fried flew to a Westchester County airport late Wednesday in the custody of FBI agents.
Bankman-Fried, 30, appeared in Manhattan federal court on Thursday, when he was released on $250 million bail after an electronic monitoring bracelet was attached to him and he agreed to live with his parents in Palo Alto, California, while awaiting trial.
Ellison, the former chief executive of Bankman-Fried’s cryptocurrency hedge fund trading firm, Alameda Research, and Wang, a founder of FTX, the crypto exchange, agreed to testify against Bankman-Fried in connection with their pleas.
Assistant U.S. Attorney Danielle Sassoon told Abrams during Ellison’s plea Monday afternoon that prosecutors had expected Bankman-Fried to consent to extradition on Monday before there were “some hiccups in the Bahamian courtroom.”
“We’re still expecting extradition soon, but given that he has not yet entered his consent, we think it could potentially thwart our law enforcement objectives to extradite him if Ms. Ellison’s cooperation were disclosed at this time,” Sassoon told Abrams.
The judge got assurance from Ellison’s defense lawyer that there was no objection to the request before granting it.
“Exposure of cooperation could hinder law enforcement officials’ ability to continue the ongoing investigation and, in addition, may affect Mr. Bankman-Fried’s decision to waive extradition in this case,” Abrams said.
Criminal charges lodged against Bankman-Fried were revealed on Dec. 13, when prosecutors said the entrepreneur began defrauding customers and investors after FTX’s 2019 founding by illegally diverting money to cover expenses, debts and risky trades at Alameda, which was created in 2017.
At a news conference, Williams called the crimes that enabled Bankman-Fried to make lavish real estate purchases and large political donations “one of the biggest frauds in American history.”
At her plea, Ellison said since FTX and Alameda collapsed in November, she has “worked hard to assist with the recovery of assets for the benefit of customers and to cooperate with the government’s investigation.”
“I am truly sorry for what I did. I knew that it was wrong. And I want to apologize for my actions to the affected customers of FTX, lenders to Alameda and investors in FTX,” she said.
Ellison said she was aware from 2019 through 2022 that Alameda was given access to a borrowing facility at FTX.com that allowed Alameda to maintain negative balances in various currencies.
She said the practical effects of the arrangement was that Alameda had access to an unlimited line of credit without being required to post collateral and without owing interest on negative balances or being subject to margin calls or liquidation protocols.
Ellison said she knew that if Alameda’s FTX accounts had significant negative balances in any currency, it meant that Alameda was borrowing funds that FTX’s customers had deposited into the exchange.
“While I was co-CEO and then CEO, I understood that Alameda had made numerous large illiquid venture investments and had lent money to Mr. Bankman-Fried and other FTX executives,” she said.
Ellison said she understood that Alameda had financed the investments with short-term and open-term loans worth several billion dollars from external lenders in the cryptocurrency industry.
She said that when many of those loans were recalled by lenders in June, she agreed with others to borrow several billion dollars from FTX to repay them.
“I understood that FTX would need to use customer funds to finance its loans to Alameda,” she said. “I also understood that many FTX customers invested in crypto derivatives and that most FTX customers did not expect that FTX would lend out their digital asset holdings and … deposits to Alameda in this fashion.”
From July to October, Ellison said, she agreed with Bankman-Fried and others to provide misleading financial statements to Alameda’s lenders, including quarterly balance sheets that concealed the extent of Alameda’s borrowing and the billions of dollars in loans that Alameda had made to FTX executives and related parties.
She said she knew that FTX had not disclosed to its investors that Alameda could borrow unlimited amounts from FTX, putting their assets at risk.
“I agreed with Mr. Bankman-Fried and others not to publicly disclose the true nature of the relationship between Alameda and FTX, including Alameda’s credit arrangement,” Ellison said.
During his plea earlier Monday, Wang said that between 2019 and 2022 while working at FTX, he was “directed to and agreed to make certain changes to the platform’s code” to give Alameda special privileges.
“I did so knowing that others were representing to investors and customers that Alameda had no such special privileges and people were likely investing in and using FTX based in part on those misrepresentations,” he said. “I knew what I was doing was wrong.”
Cryptocurrency entrepreneur Sam Bankman-Fried walked out of a Manhattan courthouse Thursday with his parents after they agreed to sign a $250 million bond and keep him at their California home while he awaits trial on charges that he swindled investors and looted customer deposits on his FTX trading platform.
The $250 million bond is believed to be the largest federal pretrial bond ever, said assistant U.S. attorney Nicolas Roos.
Roos said in U.S. District Court that Bankman-Fried, 30, “perpetrated a fraud of epic proportions.”
Bankman-Fried’s bail conditions are strict. He has already surrendered his passport and won’t be allowed travel documents, the court said. He cannot own firearms, open any lines of credit or start new businesses, and must seek government approval for any transactions over $1,000.
Bankman-Fried’s parents, both law professors, put their home’s equity as collateral for the bond. Bankman-Fried will be permitted to leave the Palo Alto home only for exercise or legal proceedings, the court said. The court also mandated that Bankman-Fried undergo mental health and substance abuse treatment. The entrepreneur was required to get an electronic monitoring bracelet before leaving the courthouse.
FTX founder Sam Bankman-Fried leaves court following his extradition to the U.S., Thursday Dec. 22, 2022, in New York. Bankman-Fried’s parents agreed to sign a $250 million bond and keep him at their California home while he awaits trial on charges that he swindled investors and looted customer deposits on his FTX trading platform.
Yuki Iwamura / Associated Press
Fraud or error?
Prosecutors agreed to bail because Bankman-Fried did not fight extradition, saving the govenment from a potentially yearslong, drawn-out process, Roos said.
Reunited with his parents and lawyers inside the courthouse, an apparently silent Bankman-Fried shook the hands of a supporter before heading out the door, where photographers and video crews rushed him as he got into a car and left.
Bankman-Fried wore a suit and tie in court and sat between his attorneys. Two U.S. marshals sat behind him. Near the end of the hearing, Magistrate Judge Gabriel W. Gorenstein asked Bankman-Fried whether he understood he would face arrest and owe $250 million if he chose to flee.
“Yes, I do,” Bankman-Fried answered.
Sam Bankman-Fried, founder and former CEO of crypto currency exchange FTX, is walked in handcuffs to a plane during his extradition to the United States at Lynden Pindling international airport in Nassau, Bahamas December 21, 2022.
RBPF / REUTERS
His first U.S. court appearance comes after the onetime crypto wunderkind was flown from the Bahamas to the U.S. on Wednesday. Bankman-Fried was arrested earlier this month on charges of wire fraud, conspiracy, money laundering and other financial crimes.
While he was in the air Wednesday, the U.S. attorney in Manhattan announced that two of Bankman-Fried’s closest business associates had also been charged and had secretly agreed to plea deals.
Caroline Ellison, 28, the former chief executive of Bankman-Fried’s trading firm, Alameda Research, and Gary Wang, 29, who co-founded FTX, pleaded guilty to charges including wire fraud, securities fraud and commodities fraud.
U.S. Attorney Damian Williams said in a video statement that both were cooperating with investigators and had agreed to assist in any prosecution. He warned others who enabled the alleged fraud to come forward.
“If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it,” he said. “We are moving quickly, and our patience is not eternal.”
Possibility of decades in prison
Prosecutors and regulators contend that Bankman-Fried was at the center of several illegal schemes to use customer and investor money for personal gain. He faces the possibility of decades in prison if convicted on all counts.
In a series of interviews before his arrest, Bankman-Fried said he made mistakes running FTX and Alameda but that he never intended to defraud anyone.
Bankman-Fried is charged with using money, illicitly taken from FTX customers, to enable trades at Alameda, spend lavishly on real estate, and make millions of dollars in campaign contributions to U.S. politicians.
FTX, founded in 2019, rode the crypto investing phenomenon to great heights quickly, becoming one of the world’s largest exchanges for digital currency. Seeking customers beyond the tech world, it hired the comic actor and writer Larry David to appear in a TV ad that ran during the Super Bowl, hyping crypto as the next big thing.
Bankman-Fried’s crypto empire, however, abruptly collapsed in early November when customers pulled deposits en masse amid reports questioning some of its financial arrangements.
NEW YORK — Cryptocurrency entrepreneur Sam Bankman-Fried walked out of a Manhattan courthouse Thursday with his parents after they agreed to sign a $250 million bond and keep him at their California home while he awaits trial on charges that he swindled investors and looted customer deposits on his FTX trading platform.
Assistant U.S. Attorney Nicolas Roos said in federal court that Bankman-Fried, 30, “perpetrated a fraud of epic proportions.” Roos proposed strict bail terms including the $250 million bond — which he said is believed to be the largest federal pretrial bond ever — and house arrest at his parents’ home in Palo Alto.
An important reason for allowing bail was that Bankman-Fried, who had been jailed in the Bahamas, agreed to be extradited to the U.S., Roos said.
Reunited with his parents and lawyers inside the courthouse, an apparently silent Bankman-Fried shook the hands of a supporter before heading out the door, where photographers and video crews rushed him until he left in a car.
Magistrate Judge Gabriel W. Gorenstein agreed to the bond and house arrest, though he required that an electronic monitoring bracelet be affixed to Bankman-Fried before he left the courthouse. Roos had recommended it be attached Friday in California.
Bankman-Fried was shackled at the ankles when he entered the courtroom in a suit and tie to take a seat between his attorneys. He did not speak during the hearing except to answer the judge. Near its end, he was asked by Gorenstein whether he understood he would face arrest and owe $250 million if he chose to flee.
“Yes, I do,” Bankman-Fried answered.
Soon afterward, the hearing ended and Bankman-Fried, his hands in his front pants pockets, was led out by two U.S. marshals. His next court date was scheduled for Jan. 3, when he is to appear before the judge who will preside over the case.
His bail conditions also require that he not open any new lines of credit, start a business or enter financial transactions larger than $1,000 without the approval of the government or the court.
The bond was to be secured by the equity in his parents’ home and the signature of them and two other financially responsible people with considerable assets, Roos said. The bail was described as a “personal recognizance bond,” meaning the collateral did not need to meet the bail amount.
Bankman-Fried, arrested in the Bahamas last week, was flown to New York late Wednesday after deciding not to challenge his extradition.
While he was in the air, the U.S. attorney in Manhattan announced that two of Bankman-Fried’s closest business associates had also been charged and on Monday had secretly pleaded guilty.
Carolyn Ellison, 28, the former chief executive of Bankman-Fried’s trading firm, Alameda Research, and Gary Wang, 29, who co-founded FTX, pleaded guilty to charges including wire fraud, securities fraud and commodities fraud.
U.S. Attorney Damian Williams said in a video statement that both were cooperating with investigators and had agreed to assist in any prosecution. He warned others who enabled the alleged fraud to come forward.
“If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it,” he said. “We are moving quickly, and our patience is not eternal.”
Prosecutors and regulators contend that Bankman-Fried was at the center of several illegal schemes to use customer and investor money for personal gain. He faces the possibility of decades in prison if convicted on all counts.
In a series of interviews before his arrest, Bankman-Fried said he never intended to defraud anyone.
Bankman-Fried is charged with using money, illicitly taken from FTX customers, to enable trades at Alameda, spend lavishly on real estate and make millions of dollars in campaign contributions to U.S. politicians.
FTX, founded in 2019, rode the crypto investing phenomenon to great heights, quickly becoming one of the world’s largest exchanges for digital currency. Seeking customers beyond the tech world, it hired the comic actor and writer Larry David to appear in a TV ad that ran during the Super Bowl, hyping crypto as the next big thing.
Bankman-Fried’s crypto empire, however, abruptly collapsed in early November when customers pulled deposits en masse amid reports questioning some of its financial arrangements.
FTX co-founder Sam Bankman-Fried is escorted by corrections officers to the Magistrate’s Court on December 21, 2022 in Nassau, Bahamas.
Joe Raedle | Getty Images
Sam Bankman-Fried is flying Wednesday night to New York, according to the office of the attorney general of the Bahamas, where he is later expected to be arraigned in U.S. federal court, concluding a days-long saga.
Bankman-Fried, 30, was indicted in New York federal court on Dec. 9 and arrested three days later by Bahamas law enforcement at the request of U.S. prosecutors.
His attorney, Jerone Roberts, reading from an affidavit signed Dec. 20, told the court that Bankman-Fried was consenting to extradition in part due to a “desire to make the relevant customers whole.” Bankman-Fried was “anxious to leave,” Roberts told the court.
It is unclear how his return would help plug the $8 billion balance sheet hole that, according to federal complaints, came as a result of risky trading and extravagant spending by FTX executives.
Bankman-Fried will face arraignment and bail proceedings after he lands. Unlike other white-collar cases, however, Bankman-Fried faces a particular set of challenges.
“This is obviously not the typical case,” former federal prosecutor Renato Mariotti told CNBC. “He is facing decades in prison. And he doesn’t have ties to the community in SDNY like a typical defendant would and also has ties to a foreign jurisdiction. So prosecutors have a shot at getting the judge to order detention unless the defendant posts property or a significant cash bond.”
Throughout the extradition waiver process, Bankman-Fried’s Bahamas legal team and U.S. lawyers have appeared to be at loggerheads. His legal team initially stated that it would fight extradition attempts, but on Saturday a person familiar with the matter told CNBC that the crypto billionaire had changed his mind and would return to the United States.
On Monday morning, Bankman-Fried’s Bahamas counsel said the former billionaire wouldn’t return to the United States without viewing a copy of his indictment, with the lawyer telling a Bahamas magistrate that he was “shocked” to even see Bankman-Fried in court.
Chaos ensued as reporters and attorneys for Bankman-Fried attempted to pin down whether the former crypto billionaire would be rendered back to the United States for arraignment in federal court.
Finally, on Tuesday, a Bahamas prison official and a source familiar with the matter confirmed that Bankman-Fried had signed extradition paperwork and would appear for his final hearing in Nassau on Thursday.
When Bankman-Fried lands in New York, the so-far atypical proceedings should take on a more familiar tenor. In a typical federal case, the accused “would be taken to the detention center for processing before the initial detention hearing/arraignment,” former CFTC trial attorney & Kennyhertz Perry partner Braden Perry told CNBC.
“But again, if arranged in advance with the magistrate in charge of the detention hearing, the court may allow a hearing before processing, but that is unlikely. His attorneys could also waive the detention hearing, at least for now, and request a more detailed evidentiary hearing to ensure their best arguments are made with proper evidence for detention, as it’s usually a one-time shot at getting out before trial,” Perry continued.
Bankman-Fried stands accused by federal law enforcement and financial regulators of perpetrating what the SEC called one of the largest and most “brazen” frauds in recent memory. Replacement CEO John J. Ray described a “complete failure of corporate control” at the company.
Federal regulators have alleged that Bankman-Fried used that $8 billion worth of customer assets for extravagant real estate purchases and vanity projects, including stadium naming rights and millions in political donations.