FTX Founder Sam Bankman-Fried Incarcerated After Bail Revoked
Prominent figure in the cryptocurrency world, Sam Bankman-Fried, has found himself behind bars after a federal judge in New York decided to revoke his bail. The decision came in response to accusations from prosecutors claiming that Bankman-Fried was attempting to manipulate witnesses involved in his ongoing fraud case. Judge Lewis A. Kaplan, presiding over the case, expressed concern over Bankman-Fried’s actions and ordered him to be sent to a federal detention center.
In particular, prosecutors highlighted an incident where Bankman-Fried allegedly harassed a key witness by showing a journalist private writings from his ex-girlfriend, Caroline Ellison. Ellison had served as the CEO of Alameda Research, a cryptocurrency hedge fund trading firm affiliated with FTX. Additionally, the prosecution noted an instance in January when Bankman-Fried reached out to the general counsel for FTX using encrypted communication.
Prosecutors stressed that there were no bail conditions that could effectively prevent Bankman-Fried from tampering with witnesses. Observers report that Bankman-Fried’s parents were present in the courtroom when the judge made the order.
Bankman-Fried had been residing at his parents’ residence in California while awaiting trial on a $250 million bond. The charges against him stem from allegations that he orchestrated $40 million in bribes to Chinese officials in exchange for unfreezing assets tied to his cryptocurrency business. Prosecutors also accuse him of defrauding investors out of billions of dollars through his collapsed cryptocurrency firm.
As of now, Bankman-Fried has not yet been transferred to the Federal Bureau of Prisons, according to a spokesperson. CBS News will continue to monitor the situation and provide updates as they become available.
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