FTX founder Sam Bankman-Fried jailed after US judge revokes bail

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Sam Bankman-Fried has been taken into custody after a federal choose discovered that the FTX founder most likely tried to tamper with witnesses on two events whereas awaiting trial on fraud prices stemming from the collapse of the cryptocurrency change.

In a quick written order following a listening to in Manhattan federal court docket on Friday, Decide Lewis Kaplan mentioned “there isn’t a situation or mixture of circumstances of launch that can guarantee that the defendant is not going to pose a hazard to different individuals or the protection of the neighborhood”.

Prosecutors had requested Kaplan to revoke Bankman-Fried’s bail after The New York Instances printed extracts from the personal diaries of Caroline Ellison, the previous head of the cryptocurrency change’s affiliated hedge fund Alameda Analysis. She has pleaded responsible to felony prices and is co-operating with prosecutors.

Bankman-Fried was subsequently recognized by prosecutors because the supply of the fabric, which coated a interval wherein he was romantically concerned with Ellison. The diary supplies have been “one thing that somebody who’s in a relationship can be unlikely to share with anyone, nonetheless much less The New York Instances, besides . . . to frighten” the writer, Kaplan mentioned.

The incident adopted a collection of complaints from prosecutors about Bankman-Fried’s conduct whereas awaiting a trial that’s set for October. The FTX founder is accused of misappropriating billions of {dollars} that clients deposited at his cryptocurrency change.

In a separate incident that drew hearth from prosecutors, Bankman-Fried contacted a former colleague who’s a possible witness within the case to “see if there’s a method for us to have a constructive relationship, use one another as sources when doable, or at the least vet issues with one another”, in accordance with messages quoted in court docket filings.

Kaplan mentioned throughout Friday’s listening to that the message was most likely an effort to ensure that the 2 males might “sing out of the identical hymn e-book for his or her mutual profit”.

Bankman-Fried was arrested within the Bahamas in December and agreed to be extradited to the US to face various felony prices following the dramatic collapse of FTX. He has pleaded not responsible.

Bankman-Fried was freed on a $250mn bond, secured partially by his mother and father’ California house. His bail circumstances additionally required him to put on an ankle bracelet and keep at his mother and father’ home.

However prosecutors accused him of evading a few of these circumstances, together with by utilizing a digital personal community that obstructed monitoring of a few of his web exercise. Bankman-Fried mentioned he had been attempting to look at soccer.

His mother and father attended the bail listening to on Friday. His mom, Stanford regulation professor Barbara Fried, held her head in her arms as Kaplan described how her son confirmed Ellison’s diaries to a reporter at their house in Palo Alto as an alternative of utilizing a messaging app that will create an digital path.

A lawyer for Bankman-Fried mentioned he would enchantment towards the choice to revoke his consumer’s bail. However Kaplan ordered him detained instantly, stating that the try and overturn his ruling was more likely to fail.

Bankman-Fried hurriedly eliminated his tie as US marshals superior bearing handcuffs. His mom tried to strategy him, however was led away.