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During a recent hearing, U.S. District Judge Lewis A. Kaplan ordered FTX founder Sam Bankman-Fried to be detained, rescinding his bail.
This decision came after the prosecution presented arguments suggesting that Bankman-Fried tried to intimidate a crucial witness in his case.
Bankman-Fried, who has been on house arrest in California following his extradition from the Bahamas in December, denied the charges against him.
He is accused of misappropriating billions from FTX customer accounts to offset losses at his hedge fund, Alameda Research.
After his arrest in December 2022, he was allowed to remain largely at his parents’ residence in Palo Alto, California, after securing a $250 million bond.
?BREAKING: FTX's Sam Bankman-Fried TO BE JAILED | Bail Revoked
SBF is being incarcerated for tampering with at least 2 witnesses.
He will be in jail prior to his October trial, facing a range of fraud and conspiracy charges.
He may have access to a laptop with an internet… pic.twitter.com/1sj8fMm8cO
— Mario Nawfal (@MarioNawfal) August 11, 2023
The prosecution’s claims revolve around Bankman-Fried allegedly disclosing personal writings of his ex-girlfriend, Caroline Ellison, to a journalist from the New York Times.
Ellison, the former CEO of Alameda, has entered a guilty plea for fraud and is set to testify against Bankman-Fried in collaboration with the prosecutors.
However, Bankman-Fried’s legal team countered these claims, suggesting the prosecution has taken his actions out of context.
Their defense, as reported by The Associated Press, highlighted that the evidence the government presented relies on assumptions, limited facts, and speculation.
They stated that their client’s actions don’t meet the criteria for witness tampering that would typically lead to the revocation of bail.
JUST IN: Sam Bankman-Fried appeals judge decision less than an hour after being jailed.
— Watcher.Guru (@WatcherGuru) August 11, 2023
