Sam Bankman-Fried arrest updates: Former FTX CEO denied bail due to flight risk

Bankman-Fried oversaw the crypto exchange as it plunged into bankruptcy.

The U.S. Securities and Exchange Commission on Tuesday charged Sam Bankman-Fried, the embattled former CEO of cryptocurrency giant FTX and trading firm Alameda Research, with defrauding investors.

"FTX's collapse highlights the very real risks that unregistered crypto asset trading platforms can pose for investors and customers alike," Gurbir S. Grewal, director of the SEC's Division of Enforcement, said in a statement.

Bankman-Fried was arrested Monday in the Bahamas after federal prosecutors in New York filed criminal charges contained in a sealed indictment, according to the Royal Bahamas Police Force. He appeared in court in the Bahamas on Tuesday and was denied bail after a judge determined he was too much of a flight risk.

Bankman-Fried denied bail due to flight risk

Sam Bankman-Fried's application for bail was denied on Tuesday after a judge determined he was too much of a flight risk.

He will be remanded until Feb. 8, 2023, in the Bahamas Department of Corrections.

Bankman-Fried will be held in the prison's medical department Tuesday night with a few other inmates, according to the prison chief.

-ABC News' Will Gretsky

Jean-Pierre won't say whether Biden will return donations

White House press secretary Karine Jean-Pierre would not engage when asked specifically about FTX founder Sam Bankman-Fried's arrest, and deferred to the Hatch Act when pressed if President Joe Biden planned to return the more than $5 million in donations that were given to his 2020 campaign.

The Hatch Act prevents federal employees, like Jean-Pierre, from engaging in political campaigning.

Jean-Pierre also wouldn't give Biden's opinion on the arrest and collapse of FTX. However, she was more willing to talk about what could be done to put regulations in place in the crypto sphere.

"This administration has consistently urged Congress to take action to address regulatory gaps posed by digital assets and support legislative efforts to enact crypto legislation to better protect American consumers that just last month Secretary [of the Treasury Janet] Yellen, in fact, called on Congress to 'move quickly to fill the regulatory gaps.' That's a quote that she said herself and the administration has identified what those gaps look like," Jean-Pierre told reporters. "But again, we have urged this is something for Congress to do."

U.S. Attorney Damian Williams urged politicians to return the millions of dollars donated by Bankman-Fried at a press conference earlier Tuesday.

-ABC News' Molly Nagle

More than $8 billion in FTX customer losses, federal official says

Sam Bankman-Fried defrauded customers and investors in FTX as well as lenders to his hedge fund, Alameda Research, and he violated campaign finance laws, federal prosecutors in New York said Tuesday as they discussed the fruits of a "complex and sprawling" investigation.

The criminal charges came one month after FTX filed a $32 billion bankruptcy and U.S. Attorney Damian Williams said the investigation was ongoing and "moving very quickly."

Williams said he authorized charges against Bankman-Fried on Wednesday of last week. A grand jury returned an indictment Friday.

There are more than $8 billion in customer losses, said Gretchen Lowe of the Commodity Futures Trading Commission.

In addition to fraud and conspiracy, the indictment alleged Bankman-Fried violated campaign finance laws by making tens of millions of dollars in campaign donations -- to both Republicans and Democrats -- with stolen funds. The contributions were made in the name of Alameda Research with money taken from FTX, the indictment alleged.

Williams urged political campaigns and candidates who received donations from Bankman-Fried or Alameda to work with his office to return the money.

Bankman-Fried is fighting extradition from the Bahamas to New York to face all of these charges.

"Fraud is fraud," FBI Assistant Director Michael Driscoll said. "It does not matter the complexity of the investment scheme."

-ABC News' Aaron Katersky

Bankman-Fried doesn't waive extradition in court appearance

Sam Bankman-Fried did not waive his rights to an extradition hearing as he made his first court appearance in the Bahamas on Tuesday.

Had he waived his rights, the U.S. would have been able to extradite Bankman-Fried immediately. It's unclear now how quickly an extradition could happen.

The court proceedings were still ongoing as of noon.

-ABC News' Will Gretsky