Former FTX CEO Sam Bankman-Fried’s bail has been revoked by a federal judge in response to allegations that he attempted to intimidate witnesses by sharing information with New York Times reporters.
The decision was made during an August 11 hearing at the United States District Court for the Southern District of New York. Judge Lewis Kaplan ordered the revocation of Bankman-Fried’s $250 million bail, which had initially kept him out of custody since his arraignment in December 2022.
Bankman-Fried had given interviews to New York Times reporters, with the intention, as suggested by Judge Kaplan, of “hurting and frightening” his former colleague and girlfriend, former Alameda Research CEO Caroline Ellison.
His legal team confirmed his collaboration with the reporters, leading to the imposition of a gag order to prevent any further extrajudicial statements related to the ongoing criminal case.
Assistant U.S. Attorney Danielle Sassoon cited Bankman-Fried’s breach of previous bail conditions, which included sending a message via the Signal app to FTX US general counsel Ryne Miller, using a virtual private network for internet activities, and releasing information to reporters aimed at intimidating Ellison.
The prosecutor also mentioned that the Putnam County Correctional Facility could provide Bankman-Fried with a laptop if he were to be remanded into custody, though home detention with restrictions on Google Drive was also considered.
Judge Kaplan stated that there was probable cause to believe that Bankman-Fried had attempted to tamper with witnesses on at least two occasions, and he listed additional violations as well.
Consequently, he decided to revoke the bail. Sassoon argued that Bankman-Fried had allegedly asked witnesses to delete specific messages and documents.
Bankman-Fried’s attorney, Mark Cohen, pleaded with the judge to maintain his bail conditions, asserting that coordination with the legal team was necessary.
Cohen also contended that allegations of witness intimidation should be addressed during the October trial.
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Despite Bankman-Fried’s legal team’s intention to appeal the decision, Judge Kaplan denied the motion and ordered Bankman-Fried to be remanded into custody, likely at the Putnam County Correctional Facility.
He may be transferred to the Metropolitan Detention Center in Brooklyn once the trial begins in October.
It’s worth noting that Bankman-Fried’s parents may have been present at the hearing.
Bankman-Fried, who has primarily been staying at his California home except for court appearances in New York, is facing 12 criminal charges spanning two trials scheduled for October 2023 and March 2024.
While a campaign finance law violation charge is set to be dropped due to an extradition agreement with the Bahamas, prosecutors intend to include the alleged scheme in a wire fraud charge.
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