Sam Bankman-Fried, the self-proclaimed crypto guru now facing numerous charges of fraud, had his bail of $250M revoked on Friday. Lewis Kaplan, US District Judge, ruled after hearing evidence that Bankman-Fried tried to influence a key witness in the case.
Bankman-Fried jailed ahead of October trial
Cuffed while being escorted from the Manhattan court, the FTX founder will await his October trial behind bars instead of the Palo Alto mansion of his parents. The judge’s decision came after Bankman-Fried gave the New York Times private papers belonging to Caroline Ellison, his former girlfriend and CEO of Alameda Research, a hedge fund that was part of the former crypto empire.
Caroline Ellison Source: New York Post
Prosecutors in the case portrayed this as an attempt to muddy Ellison’s character and influence prospective jurors. Ellison turned witness for the prosecution after pleading guilty to criminal charges, which could lead to a prison sentence of up to 110 years and agreed to a deal for a more lenient sentence in exchange for the testimony.
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On the flip side, Bankman-Fried’s lawyers maintained that he had every right to contact the press and attempt to protect his reputation against the sullied attacks. The defendant’s legal representation argued that the bail revocation was only an attempt to get Bankman-Fried behind bars and was based on conjecture and insufficient facts.
The bail package did however strongly limit internet and phone usage. There is now a gag order on all involved in the case.
