A federal judge in New York has revoked the bail of Sam Bankman-Fried, the would-be cryptocurrency mogul and founder of FTX, following allegations of witness tampering. Multiple outlets have reported on this development. This decision means that Bankman-Fried, who is facing fraud charges, will remain in jail until his trial in October, although his attorneys are expected to appeal.
Bankman-Fried’s parents had previously agreed to sign a $250 million bond to keep him at home in Palo Alto, California after the collapse of FTX, one of the largest cryptocurrency exchanges in the world.
During the court hearing, U.S. District Judge Lewis Kaplan stated that there was probable cause to believe that Bankman-Fried had attempted to tamper with witnesses on at least two occasions, according to The Wall Street Journal. While Bankman-Fried’s lawyers argued that he was protecting his reputation, prosecutors claimed that his actions amounted to tampering with a key witness, his former girlfriend Caroline Ellison.
Bankman-Fried had provided personal writings of Ellison, who was formerly the CEO of Alameda Research, a cryptocurrency hedge fund owned by Bankman-Fried, to reporters from The New York Times. This violated the terms of his bail release, as he was supposed to have restricted internet and phone usage.
The Justice Department has charged Bankman-Fried with eight counts related to money laundering, campaign finance offenses, and various types of fraud. These charges were filed a few weeks after FTX collapsed, resulting in billions of dollars in losses for investors. Bankman-Fried is accused of using customer deposits to pay off his own business expenses.
At the end of the hearing, Bankman-Fried surrendered his blazer, tie, and shoelaces to his lawyers before being handcuffed and taken away.
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