Sam Bankman-Fried Faces Bail Revocation Over Diary Leak, Witness Tampering Accusations

Federal prosecutors have submitted a movement searching for to revoke the $250 million bond granted to Sam Bankman-Fried, alleging the founding father of the now-bankrupt FTX cryptocurrency trade engaged in new makes an attempt to tamper with authorities witnesses whereas out on pretrial launch.

In a 12-page letter submitted to Choose Lewis Kaplan on Thursday, prosecutors accused Bankman-Fried of leaking “private and uncooked” diary entries written by his ex-girlfriend and former Alameda Analysis CEO Caroline Ellison to The New York Occasions in an effort to “painting a key cooperator testifying in opposition to him in a poor and inculpatory mild.”

“By sharing Ellison’s non-public writings about her insecurities and heartache with the hope that it might be revealed by the New York Occasions, the defendant’s conduct additionally constitutes an try and ‘deliberately harass’ Ellison to hinder, forestall, or dissuade her from testifying,” the letter states.

The submitting was signed by United States Lawyer Damian Williams and 5 Assistant United States Attorneys, together with AUSA Danielle Sassoon, who first requested Bankman-Fried’s bail be revoked earlier this week.

Prosecutors argue the leaked diary entries characterize solely the most recent effort by Bankman-Fried to improperly affect witnesses, coming after he beforehand tried to contact the FTX US normal counsel in January whereas restricted from speaking with potential witnesses within the case.

“I might actually like to reconnect and see if there’s a approach for us to have a constructive relationship, use one another as assets when potential, or at the very least vet issues with one another,” Bankman-Fried allegedly wrote to the FTX counsel.

The federal government attorneys say Bankman-Fried’s use of the encrypted messaging app Sign for the communication was in step with a sample of utilizing ephemeral messaging platforms like Sign and Slack to hide potential proof of wrongdoing at FTX and Alameda.

“The defendant’s newest efforts to intrude with a good trial—whether or not deemed tried witness tampering beneath Part 1512 or not—greater than establishes by a preponderance of the proof each that no set of launch situations will guarantee the security of the group and that the defendant is unlikely to abide by any launch situations,” the bail revocation movement argues.

Protection lawyer Mark Cohen dismissed the witness tampering accusations in courtroom final week, saying Bankman-Fried “did nothing apart from train his First Modification rights” in speaking with the media.

However prosecutors contend Bankman-Fried’s leaks to The New York Occasions and lots of of telephone calls and emails with journalists point out a deliberate “technique” to improperly affect potential jurors and intimidate witnesses main as much as his trial, scheduled to start in October.

“The place the technique for rehabilitating his repute was constructed on discrediting and blaming Caroline Ellison in a nationwide and worldwide publication, that’s learn by many potential jurors on this district, it crossed a line towards improperly influencing these potential jurors and intimidating a witness and sending a message to different potential witnesses,” the movement reads.

Choose Kaplan didn’t instantly rule on revoking Bankman-Fried’s bond, which might mark a dramatic flip for the FTX founder who has been on home arrest at his dad and mom’ house in California since his launch on $250 million bond in December.

Bankman-Fried, 31, was indicted in December on costs of wire fraud, securities fraud, conspiracy and marketing campaign finance violations for allegedly misusing FTX buyer deposits to make lavish actual property purchases, donate tens of thousands and thousands of {dollars} to political campaigns and make dangerous trades at Alameda Analysis.

He has pleaded not responsible. If convicted, he might resist 115 years in jail primarily based on the eight counts in opposition to him.

Federal prosecutors have argued the ex-billionaire’s in depth monetary assets and international ties make him an distinctive flight danger. Bankman-Fried’s attorneys insist he isn’t a hazard to the group and needs to stay within the U.S. to mount his authorized protection.

The newest witness tampering allegations middle on Bankman-Fried’s interactions with the media whereas awaiting trial. Prosecutors say he adopted an improper “technique” of leaking delicate supplies to information retailers to affect public opinion and improperly sway potential jurors in opposition to the federal government’s case.

They level to his determination to offer private diary entries written by Ellison to 2 New York Occasions reporters as a very egregious instance of witness intimidation and obstruction of justice.

The non-public journal pages contained “uncooked” reflections on her tumultuous romantic relationship with Bankman-Fried and emotional struggles main Alameda, prosecutors stated. Their launch within the Occasions was allegedly meant to embarrass Ellison and forged her cooperation with the federal government in a damaging mild.

Protection lawyer Mark Cohen argued the media contacts have been constitutionally protected free speech. However prosecutors maintained Bankman-Fried crossed a line by selectively leaking prejudicial details about a trial witness to the media in an effort to harass her and doubtlessly affect jurors.

Interactions with The New York Occasions characterize simply the “tip of the iceberg” in the case of Bankman-Fried’s in depth media outreach, the movement alleges. An evaluation of his telephone and e-mail information present he exchanged over 1,000 telephone calls and 100 emails with journalists, together with lengthy conversations with one of many reporters who revealed the diary story.

The letter to Choose Kaplan states that Bankman-Fried’s “repeated abuses present that any revised launch situations will doubtless end result solely in additional circumvention or violation.” The federal government argues his conduct whereas on bail demonstrates no mixture of launch restrictions would moderately guarantee he wouldn’t proceed making an attempt to impede justice.

In January, Bankman-Fried’s bail phrases have been tightened to ban him from contacting present or former staff of FTX or Alameda after the communication with the FTX normal counsel. However prosecutors say he rapidly discovered methods across the limitations, culminating within the leaked diary publications.

“The defendant has left no room for doubt of his continued intent to prejudice the trial and his capability to search out methods to bypass his bail situations in that pursuit,” the movement contends.

The witness tampering claims compound prosecutors’ earlier considerations about Bankman-Fried’s use of VPNs and encrypted messaging apps to hide his on-line exercise whereas on bail. They argue his conduct flouting launch restrictions demonstrates that the one technique to guarantee he is not going to proceed makes an attempt to improperly taint jury swimming pools or affect witness testimony.

Protection lawyer Mark Cohen stated his workforce wants additional time to reply to the federal government’s “hyperbolic assertions” and inform the courtroom “what truly occurred” relating to Bankman-Fried’s communications. He’s anticipated to file a proper opposition transient forward of Choose Kaplan’s determination on bail revocation.

Editor’s be aware: This story was drafted with Decrypt AI from sources referenced within the textual content, and fact-checked by Ozawa.