In a stunning turn of events, FTX founder Sam Bankman-Fried has been ordered to await trial behind bars after a bail hearing revealed alleged attempts to influence witnesses against him, according to a recent report by the St. Louis Post.
The decision, made by US District Judge Lewis A. Kaplan, came after prosecutors presented evidence suggesting Bankman-Fried had engaged in harassment tactics, including disclosing the private writings of a key witness to a journalist.
FTX Founder Sentenced To Jail
Bankman-Fried, a 31-year-old cryptocurrency entrepreneur, had been under house arrest at his parent’s residence in Palo Alto, California, since his extradition from the Bahamas in December.
Facing charges of defrauding investors and diverting millions of dollars worth of cryptocurrency through his FTX exchange, Bankman-Fried had been operating under strict bail conditions, including limited internet and phone access.
Prosecutors argued that Bankman-Fried violated these conditions by providing The New York Times with private writings belonging to Caroline Ellison, his former girlfriend and the ex-CEO of Alameda Research, FTX’s trading arm.
They claimed that this act was an attempt to “besmirch” Ellison’s reputation and potentially influence future jurors for his upcoming trial. Ellison herself has already pleaded guilty to criminal charges and agreed to testify against Bankman-Fried.
Bankman-Fried’s legal team countered these allegations, asserting that the article published by The New York Times portrayed Ellison sympathetically, implying that their client’s intentions were misunderstood.
They also criticized the prosecution for relying on circumstantial evidence and insubstantial facts to incarcerate Bankman-Fried.
Furthermore, a gag order has been imposed, preventing individuals involved in the trial, including Bankman-Fried, from making public comments.
Per the report, this move has raised concerns about the potential infringement on First Amendment rights and the public’s interest in understanding the case and Ellison’s involvement.
David McCraw, a lawyer representing The New York Times, has emphasized the importance of the freedom of the press and public curiosity regarding Ellison’s role in the alleged fraud scheme.
Acknowledging the need for timely and accurate reporting, McCraw highlighted the newspaper’s commitment to providing fair and relevant information to its readers. As the legal battle intensifies, public attention remains fixed on the outcome of Bankman-Fried’s trial.
The allegations against him, combined with the involvement of high-profile individuals and the intricate world of cryptocurrency, underscore the significance of this case within the evolving landscape of digital finance.
The court proceedings will undoubtedly shape the future of FTX and potentially carry broader implications for the cryptocurrency industry as a whole.
Featured image from iStock, chart from TradingView.com