FTX Founder Sam Bankman-Fried Faces Tightened Bail Conditions and Possible Jail in Trial
Sam Bankman-Fried, the founder of now-defunct cryptocurrency exchange FTX, is facing tightened bail conditions and the possibility of jail time as he awaits trial over the collapse of his exchange.
At a recent hearing, US District Judge Lewis Kaplan imposed a "gag order" on Bankman-Fried, restricting his ability to communicate publicly, Reuters reported Thursday.
The decision came after prosecutors argued that he crossed a line by sharing personal writings of his former romantic partner Caroline Ellison with a reporter, potentially tampering with a witness.
The hearing, held in Manhattan federal court, saw prosecutors request that Bankman-Fried be detained immediately, citing his actions as a second instance of witness tampering.
“It is the government’s view that no set of release conditions can secure the safety of the community,” Danielle Sassoon, an assistant US attorney, said.
"It appears to be undisputed the defendant provided the documents quoted [in the New York Times] … to discredit [Ellison]."
However, Bankman-Fried's lawyer, Mark Cohen, argued that his client was merely trying to protect his reputation by communicating with journalists.
He also expressed concerns about the impact of jail time on Bankman-Fried's ability to prepare for the upcoming trial scheduled for October 2.
The judge decided to impose the gag order but gave both sides until August 3 to present their arguments on whether jail time is necessary for Bankman-Fried.
Bankman-Fried has pleaded not guilty to charges of stealing billions of dollars in FTX customer funds to cover losses at his crypto hedge fund, Alameda Research.
Three former members of his inner circle, including Caroline Ellison, have pleaded guilty to fraud charges and are cooperating
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