FTX Founder Sam Bankman-Fried Is Headed To Jail: Judge Revokes Bail Over Witness Tampering

FTX founder Sam Bankman-Fried is set to be incarcerated Friday following a judge’s decision to support federal prosecutors’ call to revoke his bail due to purported witness interference.

The decision came after a court session in New York, where Bankman-Fried will stay in custody until the commencement of his criminal trial on Oct. 2, CNBC reported Friday.

Despite Bankman-Fried’s plea for a postponed detention while awaiting an appeal, Judge Lewis Kaplan declined. Since his December apprehension, he had been enjoying a $250-million bail, with the terms confining him to his parents’ residence in Palo Alto, California.

Friday’s court appearance is a continuation of several pre-trial sessions concerning Bankman-Fried’s ongoing interactions with the media. The Justice Department perceives these interactions as a consistent attempt at witness manipulation and a breach of his bail terms. Earlier in July, Kaplan had cautioned Bankman-Fried about his media engagements.

Several media entities, including representatives from The New York Times, voiced their objections to his detention, highlighting concerns over freedom of speech. The defense maintained that Bankman-Fried was merely exercising his first amendment rights without infringing on his bail terms.

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The prosecution highlighted Bankman-Fried’s extensive communications with the press, including over 100 emails and more than 1,000 phone calls.

A significant concern was his disclosure of private journal entries from his former partner, Caroline Ellison, to The New York Times. Ellison, previously the CEO of Bankman-Fried’s unsuccessful crypto venture Alameda Research, had admitted to federal offenses in December 2022 and is anticipated to be a primary witness for the state.

The prosecution emphasized Bankman-Fried’s attempts to undermine Ellison by indirectly intimidating her through media outlets. This argument was compelling enough for Kaplan to order Bankman-Fried’s detention.

Previously, the prosecution had to revise charges in line with an extradition treaty with The Bahamas, where Bankman-Fried was once detained. The government has hinted at introducing a new superseding indictment next week.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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