A federal judge has made the decision to revoke the bail of former FTX CEO, Sam Bankman-Fried, following allegations of witness intimidation. The judge, Lewis Kaplan, ordered Bankman-Fried’s bail to be revoked during a hearing on August 11th in the United States District Court for the Southern District of New York. This means that Bankman-Fried will likely be held in jail for the duration of his two trials for fraud related to his activities at FTX.
According to individuals present at the hearing, Judge Kaplan stated that Bankman-Fried’s interviews with New York Times reporters were an attempt to intimidate former Alameda Research CEO Caroline Ellison, who is both his former colleague and girlfriend. Bankman-Fried’s legal team confirmed that he had provided the reporters with some of the published information. As a result, Kaplan imposed a gag order preventing any extrajudicial statements related to the criminal case.
Assistant U.S. Attorney Danielle Sassoon argued that Bankman-Fried had violated previous bail conditions on multiple occasions. These violations included sending a message on the Signal app to FTX US general counsel Ryne Miller in January, using a virtual private network for internet activity, and releasing information to reporters aimed at intimidating Ellison. Sassoon also mentioned that the Putnam County Correctional Facility was prepared to offer Bankman-Fried a laptop if he were to be remanded, and suggested home detention with restrictions on Google Drive as an alternative option.
Judge Kaplan stated that there was probable cause to believe that Bankman-Fried had attempted to tamper with witnesses, and noted additional violations of bail conditions. Therefore, he made the decision to revoke bail, stating, “All things considered, I am going to revoke bail.”
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Sassoon argued that Bankman-Fried’s actions showed an intent to interfere with the integrity of the trial, while Bankman-Fried’s attorney, Mark Cohen, pressed the judge to allow his client to continue with his bail conditions, citing the need for coordination with the legal team. However, the judge denied the motion and ordered Bankman-Fried to be remanded to custody, likely at the Putnam County Correctional Facility. It is possible that he may be transferred to the Metropolitan Detention Center in Brooklyn once the trial begins in October. Bankman-Fried was reportedly led out of the courtroom in handcuffs.
Bankman-Fried’s parents were reported to have been present at the hearing, and it is worth noting that he has primarily been confined to their California home when not traveling to New York for court proceedings.
Bankman-Fried is facing a total of 12 criminal charges, which will be spread across two trials scheduled to begin in October 2023 and March 2024. In July, prosecutors announced their decision to drop a charge related to violations of campaign finance laws due to the conditions of an extradition agreement with the Bahamas. However, they have stated that they will still consider the alleged scheme as part of a wire fraud charge.
It is important to note that this situation is constantly evolving, and updates may arise as the trials progress. The decision to revoke Bankman-Fried’s bail highlights the seriousness of the alleged witness intimidation and underscores the importance of maintaining the integrity of the trial process.
