The United States Department of Justice (DOJ) is seeking the revocation of Sam Bankman-Fried’s bail, as stated in a court filing on July 28.
The accusations against him include attempting to tamper with witnesses and leaking Caroline Ellison’s diary to The New York Times.
SBF was initially released on bail on December 22, 2022, but later requested multiple modifications to his bail conditions. On January 15, 2023, he reportedly contacted the current general counsel of FTX US through email and the encrypted messaging app, Signal.
In this communication, SBF expressed a desire to reconnect and explore the possibility of establishing a constructive relationship, potentially using each other as resources or providing mutual input on various matters.
However, the DOJ alleges that SBF also used Signal for obstructive purposes, taking advantage of the app’s auto-deletion feature to complicate the investigation.
This behavior raised concerns about potential witness tampering in the eyes of the court.
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Former U.S. Securities and Exchange Commission’s Office of Internet Enforcement chief, John Reed Stark, explained that Judge Lewis Kaplan has several options in response to SBF’s actions.
The judge could interpret them as attempts to improperly influence witnesses, leading to either further modifications to his bail conditions or the complete revocation of his bail.
U.S. Attorney Danielle Sassoon requested the revocation of SBF’s bail after a July 26 hearing in a Manhattan court.
The allegations against SBF include using his freedom to intimidate Caroline Ellison, his former romantic partner and colleague.
Sassoon informed the judge that SBF made approximately 100 calls to an NYT reporter in an attempt to “intimidate” Ellison.
In a separate complaint filed on July 20, the DOJ accused SBF of leaking Ellison’s diary to discredit a government witness publicly. By sharing her personal writings with a reporter, SBF allegedly aimed to undermine her credibility.
The written submission to the court followed the July 26 hearing and raised questions about whether SBF should remain free on bail.
Judge Kaplan faces a difficult decision in this case, as he must weigh the allegations against SBF and consider the potential risks posed by his actions.
Should SBF be allowed to remain free, the judge is likely to reiterate previous warnings.
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