FTX co-founder, Sam Bankman-Fried, is seeking temporary release from jail in order to work on his defense with his lawyers at the federal courthouse in Manhattan. On Friday, Bankman-Fried’s lawyers sent a letter to US District Judge Lewis Kaplan, stating that their client was unable to adequately review the extensive documents related to his case while detained at the Metropolitan Detention Center (MDC) in Brooklyn.
According to Bankman-Fried’s lawyer, Christian Everdell, the government recently provided him with three-quarters of a million pages of Slack communications, which were due months ago. Everdell wrote, “Just last week the government produced three quarters of a million pages of Slack communications, which were supposed to be produced months ago, that Mr. Bankman-Fried will have no hope of reviewing under this schedule.” He emphasized that it is crucial for Bankman-Fried to work closely with his legal team and use an internet-enabled laptop at the courthouse to expedite the review process, especially with his fraud trial scheduled for October.
In response to Bankman-Fried’s appeal, prosecutors raised concerns about his compliance with requirements relating to his planned defense. They said that Bankman-Fried has yet to provide all the necessary information regarding the advice he relied on for his actions. Prosecutors warned that, unless Bankman-Fried promptly discloses details about the advice he received and its source, he should be prohibited from introducing such a defense at trial. While prosecutors offered to load documents onto hard drives for Bankman-Fried’s use at MDC, a laptop solution was unfeasible.
Initially, prosecutors considered transferring Bankman-Fried to a smaller, upstate facility where he could access an internet-enabled laptop, but prison officials opposed this idea. Known for its challenging conditions, the Metropolitan Detention Center has a notorious reputation among inmates.
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Bankman-Fried was jailed due to unauthorized use of the internet. Judge Kaplan sent him back to jail last week over alleged witness tampering, believing that Bankman-Fried attempted to tamper with witnesses on at least two occasions. The decision was also influenced by his unauthorized use of the Internet while under bail at his parent’s residence in California. Judge Kaplan found that Bankman-Fried had engaged in excessive contact with individuals via text and even used a virtual private network.
Moreover, Bankman-Fried is facing new allegations from the Department of Justice (DOJ), including the embezzlement of customer funds. According to an indictment filed on Monday, Bankman-Fried is accused of misappropriating and embezzling customer deposits from FTX, using the stolen funds to make over $100 million in political campaign contributions ahead of the 2022 US midterm elections. The indictment alleges that Bankman-Fried continued to use the embezzled money for his personal investments, acquisitions, and campaign contributions, despite being aware of FTX’s financial shortfall.
Bankman-Fried’s trial for fraud is scheduled for October, and it is crucial for him to have sufficient time and resources to review the extensive documents related to his case. His lawyers argue that the recent late production of three-quarters of a million pages of Slack communications by the government has made it impossible for Bankman-Fried to adequately review the evidence against him. They believe it is essential for him to work closely with his legal team and use an internet-enabled laptop at the courthouse to expedite the review process.
Prosecutors have expressed concerns about Bankman-Fried’s compliance with disclosure requirements for his defense. They insist that he needs to promptly provide all the necessary information regarding the advice he relied on for his actions, including the source of that advice. Failure to do so could result in him being prohibited from introducing such a defense at trial.
While prosecutors have offered to load the documents onto hard drives for Bankman-Fried’s use at the Metropolitan Detention Center, his lawyers argue that a laptop solution would be more efficient. However, the prison officials have opposed the idea of transferring Bankman-Fried to a smaller facility where he could access an internet-enabled laptop.
Bankman-Fried’s unauthorized use of the internet while under bail and the alleged witness tampering incidents were factors that led Judge Kaplan to send him back to jail. The disgraced crypto boss now faces additional allegations from the Department of Justice, accusing him of embezzling customer funds and using them for political campaign contributions.
As the trial approaches, it remains to be seen whether Bankman-Fried will be granted temporary release to work on his defense and review the extensive evidence against him. The proceedings will shed more light on the allegations made, and the verdict will determine the consequences Bankman-Fried will face for his actions.
