Diddy and crypto fraudster SBF are sharing a dorm-style room in a Brooklyn jail

Bankman-Fried has been imprisoned at the same jail since last year. He is serving a 25-year sentence on fraud charges after stealing $8 billion from customers of his FTX crypto exchange. He funneled money into his crypto-trading fund Alameda Research, venture capital investments, political donations, and used it for personal spending.

The pair are among roughly 20 inmates housed in the area, which is reserved for high-profile defendants or those who need special security, sources said.

Other high-profile inmates, like disgraced pop singer R. Kelly and sex offender Ghislaine Maxwell —who has ties to Jeffrey Epstein— have previously been held in MDC.

The jail holds around 1,200 detainees, and has a reputation for tough conditions. Last week, Combs's lawyers called it too "horrific" for a defendant pre-trial, and a lawyer for an inmate who died there after a fight this summer once said it is overcrowded and understaffed, calling it "hell on earth."

Combs' lawyers have since changed course, saying he "can't say enough good things about the MDC, which has been responsive to our and his needs," according to comments obtained by the New York Times.

Jacob Shamsian contributed reporting.