Sam Bankman-Fried, the founder of the bankrupt platform FTX, is back in prison. The American’s bail was revoked on suspicion that he tried to influence witnesses.
The founder of the FTX cryptocurrency trading platform is arrested again. Judge Lewis Kaplan, who is in charge of the case in which Sam Bankman-Fried is charged with fraud at FTX, ruled revoke bailcomplying with the request made by the federal prosecutors investigating the case.
“My conclusion is that there is probable cause to believe that the defendant tried to influence witnesses at least twice.”Judge Kaplan said, in remarks quoted by Reuters.
The judge considered that the former billionaire, who went bankrupt with the collapse of FTX in November 2022, “crossed the line” by sharing private documents of Caroline Ellison, who was the executive director of FTX and also a girlfriend of Bankman-Fried, with a journalist for the New York Times (NYT). On July 20, the NYT published an article focused on Caroline Ellison, citing the 27-year-old manager’s doubts and anguish.
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According to the judge, Bankman-Fried shared this private information to “harm” and “discredit” Caroline Ellison, who since the end of 2022 has been cooperating with the US authorities. Ellison has pleaded guilty and is expected to be one of the prosecution’s key witnesses during the trial.
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Judge Kaplan denied the request from Bankman-Fried’s defense, who hoped the FTX founder’s arrest could be delayed while the appeal was ongoing. Unless the appeal is successful, the 31-year-old American is expected to remain in custody until the start of his trial, which is expected to start on October 2.
Bankman-Fried was arrested in December in the Bahamas but released after posting $250 million bail. He since then lives with his parents in Palo Alto, California.
Bankrupt FTX founder Sam Bankman-Fried will be released after posting $250 million bail
The former billionaire’s defense argues that, in prison, Bankman-Fried will not be able to adequately prepare for trial, as many of the necessary documents are only accessible through an Internet connection.
At this time, it is not yet clear in which prison Bankman-Fried will await trial. Reuters reports that many defendants going to court in New York are waiting at the Brooklyn Metropolitan Detention Center, but prosecutor Danielle Sassoon, responsible for the prosecution, proposed that the American be held at Putnam, a medium-sized prison. safety about 88 kilometers from Manhattan. .
Source: Observadora
