Headline Roundup • August 11th, 2023
Judge Revokes Sam Bankman-Fried’s Bail, Sends FTX Founder to Jail
Summary from the AllSides News Team
FTX founder Sam Bankman-Fried is headed to prison after a judge revoked his bail, deeming he tampered with witnesses in his ongoing fraud trial.
Details: Judge Lewis A. Kaplan stated there is “probable cause to believe that the defendant has attempted to tamper with witnesses at least twice.” Bankman-Fried reportedly showed a journalist the private writings of his former girlfriend and key witness, Caroline Ellison, who confessed to playing a role in a scheme to defraud investors while serving as CEO of Alameda Research, another of Bankman-Fried’s companies. Bankman-Fried has pleaded not guilty to his fraud charges. Additionally, Bankman-Fried reportedly reached out to FTX’s general counsel in January, which the judge deemed to be an effort by Bankman-Fried to ensure their stories “are on the same page.” Bankman-Fried’s legal team appealed the decision, arguing that the decision was based on “innuendo, speculation, and scant facts.” Since being released on bail, Bankman-Fried has been under house arrest at his parents’ home in Palo Alto, California.
For Context: In November 2022, FTX filed for Chapter 11 bankruptcy after previously being valued at an estimated $32 billion. The bankruptcy announcement followed a bank run triggered by a CoinDesk report that FTX was using customer assets for risky investments in Alameda Research. Bankman-Fried is accused of transferring roughly $10 billion of customer funds from FTX to Alameda Research.
How the Media Covered It: Outlets across the spectrum are reporting on the development consistently.
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Michael M. Santiago/Getty Images
A federal judge revoked FTX founder Sam Bankman-Fried’s bail and sent him to jail Friday.
The decision ended a monthslong battle between the Justice Department and the onetime crypto entrepreneur over his behavior while awaiting trial on fraud charges.
U.S. District Judge Lewis Kaplan said at a hearing in New York that Bankman-Fried pushed the limits of his bail conditions repeatedly and possibly committed a federal crime.
“There is probable cause to believe that the defendant has attempted to tamper with witnesses at least twice,” Kaplan said.
AP Photo/Bebeto Matthews
Embattled FTX founder Sam Bankman-Fried has had his bail revoked and will be placed back under arrest.
Judge Lewis Kaplan of the District Court for the Southern District of New York reportedly ordered the 31-year-old's bail be revoked on Friday over accusations that he attempted to intimidate witnesses. Bankman-Fried was arrested last year on fraud allegations stemming from his management of the cryptocurrency exchange FTX, which suddenly collapsed in 2022.
Bankman-Fried will be detained through the duration of his criminal trials, according to reports from reporters inside the courtroom. Kaplan...
AP Photo / Bebeto Matthews
FTX founder Sam Bankman-Fried left a federal courtroom in handcuffs Friday after a judge revoked his bail after concluding that the fallen cryptocurrency wiz had repeatedly tried to influence witnesses against him.
Bankman-Fried looked down at his hands as Judge Lewis A. Kaplan explained at length why he believed the California man had repeatedly pushed the boundaries of his $250 million bail package to a point that Kaplan could no longer ensure the protection of the community, including prosecutors’ witnesses, unless the 31-year-old was behind bars.
At the conclusion of...
