Sam Bankman-Fried, founder of FTX, is sent to jail for alleged witness tampering, in a case that continues to unfold.
Sam Bankman-Fried, the founder of FTX, was sent to jail Friday after a judge granted federal prosecutors’ request to revoke his bond for alleged witness tampering. Bankman-Fried was taken directly into custody from a hearing in New York and is expected to remain in prison until his criminal trial, scheduled for October 2.
SFB, 31, was arrested in December 2022 and is accused by the US Justice of seven counts that include fraud and money laundering for, among other things, allegedly diverting billions of dollars from customers of FTX for other purposes and to be able to lead a life of luxury.
Accusations and Case Details
Judge Lewis Kaplan denied Bankman-Fried’s request for delayed detention pending appeal. During his ruling, Judge Kaplan stated that there was probable cause to believe that the defendant attempted to tamper with witnesses on at least two occasions. The prosecution requested that Bankman-Fried be sent to a jail in Putnam, New York, where he would have access to a laptop with Internet access to prepare his defense.
Judge Kaplan presided over a hearing regarding the conditions of SBF’s bail after prosecutors argued that the disgraced businessman was following a “pattern of witness tampering”, and sided with them that his conduct constituted probable cause, according to CNN.
According to the judicial file of the case, to which EFE had access, the defendant’s bail was “revoked” and he was sent to “pretrial detention”, and according to the journalists present in the room, he left handcuffed to be admitted to the Brooklyn Metropolitan Detention Center (New York).
Judge Kaplan had previously imposed a “gag order” on SBF but on Friday said it was not enough to prevent him from leaking information about the case and noted that SBF has attempted witness tampering on at least two occasions, the outlet added.
Reactions and Concerns
Bankman-Fried’s arrest has drawn objections from members of the press and defense attorneys, citing free speech concerns. The defense argued that Bankman-Fried was exercising his First Amendment right and did not violate his bail conditions by speaking to reporters.
Background and Development of the Case
Since his arrest in December, Bankman-Fried had been out on $250 million bail, on the condition that he stay at his parents’ home in Palo Alto, California. The prosecution alleges that Bankman-Fried sent more than 100 emails to the media and made more than 1,000 phone calls to members of the press.
The latest incident, according to prosecutors, was the leaking of private diary entries from his ex-girlfriend, Caroline Ellison, to the New York Times. Ellison, also a former CEO of Bankman-Fried’s failed crypto hedge fund Alameda Research, pleaded guilty to federal charges in December 2022 and has been cooperating with the government.
In short, the case against Bankman-Fried, who faces various securities fraud and wire fraud charges related to FTX’s alleged multi-billion-dollar fraud, continues to unfold. The witness tampering charge has led to his arrest, and the trial is scheduled to begin in October. The story is still in development, and more updates are expected in the coming days.
The rise and fall of the very young millionaire, who made his fortune in the dazzling world of cryptocurrencies, is one of the most spectacular and exemplary cases experienced in recent years in the world of finance.
By Audy Castaneda
