Sam Bankman-Fried Is Going to Jail, Judge Revokes Bail Over Witness Tampering

Disgraced crypto mogul Sam Bankman-Fried has been remanded to jail following a bail listening to in New York earlier than U.S. District Choose Lewis Kaplan.

Choose Kaplan stated in court docket right this moment that he did not consider a gag order—to cease Bankman-Fried from speaking to the media—can be adequate. In keeping with courtroom tweets despatched by Matthew Russell Lee, in any other case often known as Inside Metropolis Press, Kaplan stated it is probably Bankman-Fried can be detained at Metropolitan Detention Heart in Brooklyn. He famous it is attainable the FTX founder and former CEO might have entry to a laptop computer whereas he is detained.

Federal prosecutors final month moved to have his bail revoked after the FTX founder and former CEO was accused of witness tampering.

The allegations relate to Bankman-Fried’s interactions with a New York Occasions reporter who revealed an article about former Alameda Analysis CEO Caroline Ellison, who in December pleaded responsible to fraud associated to the collapse of crypto trade FTX.

Within the newspaper story, Ellison stated that “working Alameda does not really feel like one thing I’m that comparatively advantaged at or effectively suited to do.”

However federal prosecutor Danielle Sassoon alleged on July 26 that Bankman-Fried had “crossed the road” a line by leaking paperwork to the newspaper.

FTX was a Bahamas-based firm that allowed customers to purchase, promote and wager on the long run worth of cryptocurrencies. It was additionally one of many greatest manufacturers within the house.

But it surely all of a sudden went bankrupt in November of final 12 months and the feds have since hit ex-boss and co-founder Bankman-Fried with 13 fees—amongst them conspiracy to commit cash laundering and wire fraud on clients.

Bankman-Fried’s trial is anticipated to start out in October.

This can be a breaking story and can be up to date.