Sam Bankman-Fried, the ex-founder of the FTX cryptocurrency exchange, has had his bail revoked by a federal judge in New York. The judge accused him of attempting to sway witnesses who were set to testify against him in his upcoming trial regarding fraud charges related to the collapse of FTX.
What led to this dramatic turn of events? Let’s delve deeper into the unfolding story.
Fried’s Actions Have Come Back to Haunt Him
Following his arrest in December due to FTX’s downfall, Bankman-Fried had been under house arrest at his parents’ residence in California. However, the judge terminated this arrangement after prosecutors claimed that he had tried to interfere with witnesses, including sharing documents with journalists.
Judge Kaplan, the presiding judge in the case, stated, “He repeatedly exceeded acceptable limits, which is why I am revoking his bail.” Bankman-Fried had initially posted a $250 million bail after being extradited from The Bahamas, where he was initially detained.
The situation became more intricate when Bankman-Fried contacted a former FTX General Counsel and watched the Super Bowl using a VPN against legal advice. Sharing a diary with the press heightened concerns, prompting the Department of Justice (DOJ) to consider revoking his bail.
Jail Term Imposed
Despite Bankman-Fried’s lawyer’s intent to file an appeal, Judge Kaplan ordered him to be detained pending the conclusion of the appeal process. Prosecutors alleged that he had provided documents to The Times in an attempt to intimidate a witness before the trial.
During the legal proceedings, Judge Kaplan temporarily restricted Bankman-Fried and his associates from engaging with the media. Bankman-Fried’s legal team argued that sharing documents with The Times was a response to media inquiries and did not violate bail conditions.
We Still Have No Clarity Yet
The status of media involvement after Bankman-Fried’s arrest remained unclear. Judge Kaplan stressed that speech would not be safeguarded if it was intended to facilitate criminal activity. He interpreted Bankman-Fried’s media engagement and communication with a former FTX employee as efforts to “intimidate or influence” witnesses.
This courtroom episode marks another setback for Bankman-Fried following the collapse of FTX. The cryptocurrency exchange faced bankruptcy after experiencing a surge in withdrawal requests last autumn, following its earlier success in the virtual currency market.
What do you think of the judge’s decision to revoke Sam Bankman-Fried’s bail?
Source: https://coinpedia.org/news/ftxs-sam-bankman-fried-sent-to-jail-after-shocking-bail-revocation/