Sam Bankman-Fried Jailed Ahead of Trial

Sam Bankman-Fried Jailed Ahead of Trial

A‍ judge on Friday revoked FTX founder Sam ⁤Bankman-Fried’s bail and sent him to jail ahead of his ⁢October trial.

⁣Bankman-Fried faces seven separate charges including ⁢wire fraud, commodity and securities fraud in connection with the FTX⁣ collapse.

NEW YORK – FTX founder Sam Bankman-Fried was sent to prison ahead of​ his October ‍trial on multiple financial crime ‍charges after a federal judge revoked his ⁤release on ‍bail​ on Friday afternoon, saying the former ‌crypto heavyweight had apparently attempted tampering ⁤with ⁢witnesses.

Bankman-Fried is willing “to take the risk of ⁤crossing the line to ‍get [the line]wherever it is,” Judge Lewis Kaplan ⁤of the US District Court for the Southern District of New York later concluded​ : “All things considered, I will revoke the bail.”

He added: “My conclusion is that there is probable reason to believe that the defendant attempted to tamper with witnesses⁢ on ⁣at ‍least two occasions. … There is a rebuttable⁣ presumption that⁤ there is​ no set of conditions ensuring Bankman-Fried’s will will ⁢not‌ pose⁢ a threat.

Barbara Fried and Joseph Bankman, Bankman-Fried’s parents, were present at the hearing. Fried cried softly after the judge’s verdict.

Bankman-Fried, the 31-year-old former ‌CEO of crypto exchange FTX, appeared in​ court on Friday after the U.S. ⁢Department ⁤of Justice requested him to⁢ be tried on charges of attempting‌ to violate the terms for violating his bond, sending him back to⁢ prison tampering with multiple witnesses.⁣ According⁣ to the DOJ, Bankman-Fried’s contacting former ⁣FTX.US General Counsel Ryne⁤ Miller and using a virtual private network to ‌watch the Super Bowl, according to his defense⁢ team, ‌was enough to generate a to require a​ change ⁤in ‍its deposit terms. The ​final straw ⁢that broke the camel’s back, however, was when Bankman-Fried shared part of the private diary of former Alameda‌ Research CEO Caroline Ellison with⁢ the New York Times.

Judge Kaplan cited both attempts to contact former FTX employees in a lengthy oral order.

While using⁢ a VPN might not be ‌all that important per se, it speaks to Bankman-Fried’s mindset, he said.

Bankman-Fried’s‍ defense team admitted he shared some diary pages ⁤with the⁤ Times, but ‍his​ lawyers denied he ‌attempted to tamper with a witness.

“Here we have​ a very thin file with a lot of‌ spin,” his attorney told the judge.

The defense also argued that Bankman-Fried’s incarceration ⁤would make ⁤preparing for his trial more difficult.

Judge Kaplan‌ was unconvinced by these arguments: “I don’t⁤ think‌ revocation poses ‌an insurmountable ⁤problem.”

During the hearing, Assistant US Attorney Danielle Sassoon argued that Bankman-Fried’s detention was⁤ also through justified by the fact that he is ⁣increasingly visiting New York for pre-trial ​conferences and pre-trial meetings.

“He’s practically unattended while he’s here,” she said.

⁤The DOJ also had alternative options in the event the ⁣judge⁤ denied Bankman-Fried’s incarceration outright. The government would have agreed ⁤to detention at home, banning all visitors and shutting down all internet access except for two databases needed to prepare for ‍the trial.

This would ⁣have included the suspension of Google Drive,⁤ Sassoon said, noting that ‌Ellison’s⁣ journal⁢ was part of the ⁣Drive files ⁤that ⁢Bankman-Fried had ⁤access to.

Mark Cohen, Bankman-Fried’s attorney,‍ tried to argue that‌ there was insufficient legal‍ basis to send him to ‌prison before⁣ trial and that the standards set in precedents had not been‌ met.

“The only reason we know about‍ [Bankman-Fried meeting with a Times reporter] is that he complied with his bail conditions,” Cohen ⁤said.

Sassoon, ⁤the prosecutor, disagreed.

“I‍ think the fact that the defendant was more subtle in his methods than a⁢ gangster doesn’t mean it was harmless,” she said.

Bankman-Fried is currently scheduled to⁤ go on trial in early October⁤ on wire fraud, merchandise fraud, securities fraud,‍ money ⁣laundering and related conspiracy charges. He faces another trial, expected in March next ‍year, on additional ⁣charges ⁣filed by the Justice⁤ Department following Bankman-Fried’s arrest and​ extradition.

Certain pre-trial⁤ motions from both the prosecution ⁣and the defense must be filed with the court by Monday, August ⁢14.

Lawyers for both the defense and prosecution said ⁢they are on track to meet next week’s deadlines.

Bankman-Fried’s attorneys said they ​would appeal the decision and requested that bail revocation ⁣be ‍stayed pending the appeal hearing. The judge refused the suspension.

⁤Just because Bankman-Fried went ⁣to jail ‍before his trial doesn’t mean he went to jail afterwards. He would have to be found ​guilty of at least⁣ one of the charges against him and then sentenced ‍to prison.

UPDATE (11 Aug 2023 20:15 ​UTC): ⁤Updated with⁣ details throughout.
UPDATE (11 Aug 2023 21:30 ‌UTC):​ Adds additional details.

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