A U.S. magistrate has withdrawn Sam Bankman-Fried’s release on bail after discovering credible evidence that the indicted FTX crypto exchange founder interfered with witnesses on at least two occasions. Judge Lewis Kaplan of the U.S. District Court made the verdict during a hearing on Bankman-Fried’s bail conditions in the federal courthouse in Manhattan. The judge unequivocally denied a request from the defense to postpone Bankman-Fried’s detention in light of the bail revocation.
The ruling has the potential to introduce complexities to Bankman-Fried’s trial preparations. Bankman-Fried stands accused of embezzling substantial sums from FTX customers to offset losses within his Alameda Research hedge fund.
The conditions of Bankman-Fried’s bail had previously limited his movements to his parents’ residence in Palo Alto, California, where he had been living under a $250 million bond since his arrest in December. However, following the bail revocation, he was led out of the courtroom by U.S. marshals in restraints, having surrendered his jacket, shoelaces, tie and personal effects.
As he was led away, Barbara Fried, his mother, tearfully nodded to him, while Joseph Bankman, his father placed a hand over his heart, both visibly affected by the situation.
The prosecution’s case for jailing Bankman-Fried was initially presented during a hearing on July 26, 2023, when it was alleged that he had crossed ethical boundaries by sharing intimate writings of his former partner, Caroline Ellison, with a journalist from the New York Times. Under the conditions of his bail, Bankman-Fried’s communications were monitored, and it was revealed that he had shared the aforementioned writings during a face-to-face encounter with the journalist at his parents’ residence. Kaplan voiced concerns that Bankman-Fried had deliberately chosen this method to avoid detection, describing it as an attempt to cover his tracks.
Bankman-Fried’s legal team, however, contended that the prosecution had misconstrued his intentions, asserting that his motivation was to safeguard his reputation and exercise his right to engage with the press.
During the July 26 court session, Judge Kaplan issued a gag order, prohibiting Bankman-Fried from making public statements about his case. This directive garnered attention from various news outlets, including the New York Times, which, in an August 2, 2023, communication, expressed the view that the restriction should solely apply to comments that could potentially impede a fair trial.
Notably, a July 20. 2023, post published in the newspaper contained excerpts from personal documents authored by Ellison before the collapse of FTX. In these documents, Ellison conveyed feelings of dissatisfaction and emotional distress resulting from both her professional role and her breakup with Bankman-Fried.
Presently, the exact location where Bankman-Fried will be detained remains uncertain. Prosecutor Danielle Sassoon suggested that he be detained at the Putnam County Correctional Facility, a medium-security jail situated approximately 55 miles north of Manhattan. The facility houses approximately 68 offenders and would offer Bankman-Fried access to a laptop with internet, allowing him to analyze evidence relevant to his trial preparations.
The fate of FTX and its founder is probably a stark reminder to other industry actors such as Riot Blockchain Inc. (NASDAQ: RIOT) that regardless of the industry one operates in, sound business management is a prerequisite to growing a business and thriving in the long-term.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a financial news and content distribution company that provides (1) access to a network of wire services via InvestorWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets, (3) enhanced press release services to ensure maximum impact, (4) social media distribution via IBN (InvestorBrandNetwork) to nearly 2 million followers, and (5) a full array of corporate communications solutions As a multifaceted organization with an extensive team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled visibility, recognition and brand awareness. CCW is where news, content and information about crypto converge.
To receive instant SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.cryptocurrencywire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://CCW.fm/Disclaimer
CryptoCurrencyWire (CCW)
New York, New York
www.cryptocurrencywire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is part of the InvestorBrandNetwork.
