FTX co-founder Sam Bankman-Fried will head to jail after a judge sided with federal prosecutors in claims of alleged witness tampering. United States District Court Judge Lewis A. Kaplan decided that the crypto tycoon would no longer be held under house arrest at his parents’ home and must report to jail.
This court appearance is the latest in a series of pre-trial hearings related to the former billionaire’s continued dealings with the press – exchanges which the Justice Department characterizes as a “pattern of witness tempering and evading his bail conditions.”
BREAKING: A bail hearing for FTX founder Sam Bankman-Fried left a judge convinced that he had repeatedly tried to influence witnesses against him. The judge then revoked his bail. https://t.co/yS7U31CGUI
— The Associated Press (@AP) August 11, 2023
BREAKING: Sam Bankman-Fried (SBF) Will Go To Jail – Bail Revoked
SBF will go to jail ahead of his October trial on various fraud and conspiracy charges.
More information to come pic.twitter.com/BPFHsquDmO
— Sulaiman Ahmed (@ShaykhSulaiman) August 11, 2023
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“Nonviolent witness tampering and obstruction poses a danger to the community and the risk of such activities would support pretrial detention,” Kaplan said. He added, “My conclusion is there is probable cause to believe the defendant tried to tamper with witnesses at least twice.”
A courtroom sketch of Judge Lewis Kaplan. (AP Photo/Elizabeth Williams)
A request was made to have Bankman-Fried sent to Putnam jail where he’d have access to a laptop and internet access available for defense preparation, as opposed to being sent to MDC, a facility closest to the courthouse that offers limited access for prisoners.
Since his arrest in December, Bankman-Fried has been out on a whopping $250 million bail package, requiring him to remain at his parents’ Palo Alto, California home.
Before the company shattered, FTX had quickly become the biggest cryptocurrency trading platform. With endorsements from prominent celebrities and notable appearances in Super Bowl advertisements, its presence was formidable.
However, the company’s fortune took a dramatic nosedive over the course of a week in November last year due to its financial connections to Bankman-Fried’s cryptocurrency hedge fund, Alameda Research. Concerns surrounding Alameda triggered a swift and pronounced reaction from both investors and customers, leading to a mass exodus of funds.
Consequently, FTX found itself compelled to declare bankruptcy, rapidly evolving into the epicenter of an ongoing federal investigation and into allegations of fraudulent activities.
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