Disgraced FTX Founder Sam Bankman-Fried Sent to Jail for Alleged Witness Tampering
A US district judge has revoked the $250 million bail of Sam Bankman-Fried, the founder of FTX, and sent him to jail for alleged witness tampering. The decision was made by US District Judge Lewis Kaplan after prosecutors claimed that Bankman-Fried had attempted to harass a key witness in his fraud case. Bankman-Fried, who is 31 years old, has been charged with defrauding investors in the US by allegedly stealing billions of dollars and using millions for political donations. He has pleaded not guilty to the charges.
Probable Cause of Witness Tampering
Judge Kaplan stated that he had found probable cause to believe that Bankman-Fried had attempted to tamper with witnesses on at least two occasions since his arrest in December. The former billionaire was led out of the hearing in handcuffs by members of the US Marshals Service after removing his shoelaces, jacket, tie, and emptying his pockets.
House Arrest and Bail Restrictions
Bankman-Fried had been under house arrest at his parents’ home in California since being extradited from the Bahamas. His $250 million bail package had imposed strict restrictions on his internet and phone usage. However, prosecutors recently demanded that he be sent to jail, alleging that he violated these rules by providing private writings of a key witness, Caroline Ellison, to The New York Times. Ellison, Bankman-Fried’s ex-girlfriend and former CEO of Alameda Research, has pleaded guilty to criminal charges and agreed to testify against him.
Defense Arguments and Gag Order
Bankman-Fried’s lawyers argued that he should not be jailed for trying to protect his reputation against negative news stories and that he had a right to speak to the press. They accused prosecutors of offering evidence based on “innuendo, speculation, and scant facts.” Since the detention request by prosecutors, Judge Kaplan has imposed a gag order, prohibiting public comments by individuals involved in the trial, including Bankman-Fried.
Despite the ongoing legal proceedings, the fall from grace of Sam Bankman-Fried, once hailed as the ‘crypto king,’ continues to captivate the public’s attention. As the trial approaches in October, the outcome will undoubtedly have significant implications for the cryptocurrency industry and the future of FTX.
Sources:
