According to a court filing on July 28, the United States Department of Justice (DOJ) is seeking to revoke the bail of Sam Bankman-Fried (SBF) due to accusations of witness tampering and leaking sensitive information. SBF was initially released on bond on December 22, 2022 but later requested several modifications to his bail conditions.
In the filing, it is stated that on January 15, 2023, SBF reached out to the current general counsel of FTX US, a cryptocurrency exchange, via email and the encrypted messaging app, Signal. The communication indicated SBF’s desire to reconnect and explore the possibility of establishing a constructive relationship. He also inquired about the potential of using each other as resources or providing mutual input on various matters.
The DOJ alleges that SBF also used Signal in an obstructive manner, taking advantage of the app’s auto-deletion feature to complicate the investigation. The court expressed concerns about the potential risk of witness tampering given SBF’s behavior.
John Reed Stark, former chief of the U.S. Securities and Exchange Commission’s Office of Internet Enforcement, suggests that Judge Lewis Kaplan has several options in response to SBF’s actions. Judge Kaplan could interpret SBF’s behavior as an attempt to improperly influence witnesses and decide to either modify his bail conditions further or revoke his bail entirely.
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Stark also emphasizes that this case poses a difficult decision for Judge Kaplan. If SBF is allowed to remain free, the judge will likely reiterate his previous warnings.
The court filing follows a hearing on July 26 in a Manhattan court where U.S. Attorney Danielle Sassoon requested the revocation of SBF’s bail. The request was based on allegations that SBF used his freedom to intimidate Caroline Ellison, his former romantic partner and colleague. Sassoon informed the judge that SBF tried to “intimidate” Ellison and made approximately 100 calls to a reporter from The New York Times.
Additionally, a complaint filed by the DOJ on July 20 accuses SBF of leaking Ellison’s diary. The DOJ alleges that SBF attempted to discredit a government witness by sharing her personal writings with a reporter.
The actions of SBF, a prominent figure in the cryptocurrency industry as the founder of FTX, have raised concerns about the credibility and trustworthiness of crypto exchanges. The controversy surrounding SBF and the allegations against him contribute to the doubts and uncertainties surrounding the sector.
It remains to be seen how Judge Kaplan will address the DOJ’s request to revoke SBF’s bail. The court’s decision will have significant implications for SBF’s future legal proceedings and may impact the reputation of the cryptocurrency industry as a whole.
The case is still ongoing, and more information will likely emerge as the legal process progresses. The outcome of this high-profile case is eagerly awaited by industry participants, legal experts, and observers concerned about the potential impact on the crypto space.
