Sam Bankman-Fried Faces Jail Time Over Alleged Witness Tampering
US prosecutors have requested the detention of Sam Bankman-Fried (SBF), founder and former CEO of the crypto exchange FTX, over allegations of witness tampering before his scheduled trial in October. The District Court Judge has issued a temporary gag order restricting public comments while mandating the prosecution to formalize the request and giving adequate time for the defense to present their case.
Prosecutors Push for Detention of FTX Founder Ahead of Trial
US prosecutors are calling for the detention of Sam Bankman-Fried (SBF), founder and former CEO of the failed crypto exchange FTX, on the grounds of alleged witness tampering. The request was forwarded to District Court Judge Lewis Kaplan during a recent hearing on Wednesday, which could land the prominent crypto entrepreneur behind bars even before his scheduled trial in October.
Bankman-Fried was released with a hefty USD 250 million bond and has been living under house arrest in his parents' home in Palo Alto, California, since December 2022. The upcoming trial, scheduled to begin in October, is in connection with criminal charges related to the collapse of FTX, once a major player in the cryptocurrency world.
The prosecution's push to modify Bankman-Fried's bail agreement arises from an article published by the New York Times and reported on CNN. The article contains reports from the former CEO of Alameda Research hedge fund, Caroline Ellison, who also happens to be Bankman-Fried's former girlfriend.
Sam Bankman-Fried's Bail at Risk as Prosecutors Allege Tampering
Prosecutors claim that Bankman-Fried during an interview with the newspaper shared "private writings" of Ellison, which constitutes witness tampering. With Ellison already pleading guilty to fraud charges earlier this year and being expected to testify against him, the case takes a serious turn.
The Bahamas-based FTX, a global digital-asset exchange, faced a turbulent period, filing for bankruptcy protection in the US on November 11. Bankman-Fried was arrested in Nassau, the capital of the Bahamas, a month later and extradited to the United States.
Bankman-Fried faces fraud allegations and accusations of misusing customer funds to finance property purchases and increase trading through Alameda in the United States. However, unlike Ellison and former FTX executives, Bankman-Fried has pleaded not guilty to the charges.
Judge Lewis Kaplan is currently considering the prosecution's request but has imposed a temporary gag order on the case. This comes as Bankman-Fried has had extensive interactions with the public and media, engaging in over 1,000 phone calls with journalists, including a staggering 100 calls with the reporter who penned the New York Times piece.
However, Bankman-Fried's lead attorney, Mark Cohen, expressed discontent with the late notification about the prosecution's request. The defense was notified about it "one minute before the court," said Cohen. Bankman-Fried's attorneys can present their case against the potential detention by August 1.
As the legal battle unfolds, the crypto community eagerly awaits the judge's decision on whether Bankman-Fried will be jailed before his trial.
Do you think the federal judge will grant the prosecution’s request to send Bankman-Fried to jail ahead of his trial? Please share your thoughts and opinions in the comments section below.
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