The sacked CEO is suspected by the prosecution of interfering with witnesses, and it has been suggested that he be imprisoned while he awaits trial.
Federal prosecutors are attempting to have Sam Bankman-Fried’s bail revoked while he is awaiting trial in a remarkable change of events. The former FTX CEO is currently under investigation for allegedly giving personal writings of Caroline Ellison, a pivotal witness in his trial, to the New York Times. Caroline Ellison is facing 13 charges and could receive a sentence of 115 years in jail if found guilty. Ellison, who had served as the CEO of FTX’s sister company, Alameda Research, and who briefly worked with Bankman-Fried, is scheduled to give a witness statement at the trial.
The prosecution claims that Bankman-Fried tampered with a witness, which is why they initially requested a gag order to stop additional revelations. But they now think that the only way to stop him from influencing witnesses is to imprison him. Mark Cohen, Bankman-Fried’s attorney, maintains his client is innocent and expressed surprise at the prosecution’s last-minute request for jail.
Related: Sam Bankman-Fried to Face Two Criminal Trials for Alleged Fraud
Both parties have been given time by Judge Lewis A. Kaplan to provide written arguments on the issue. He emphasized the need for the former FTX CEO to take the government’s request seriously while acknowledging the precarious balance between the government’s objectives and Bankman-Fried’s First Amendment rights.
SBF’s October trial looms
This most recent news heightens the suspense as the October 2023 trial for Bankman-Fried approaches. Bankman-Fried has remained on $250 million bond throughout this judicial struggle, under house arrest at his parents’ Palo Alto, California, home, and rigorously adhering to communication limitations. These limitations were previously agreed upon by Bankman-Fried’s legal team and the prosecution when it was believed that he had contacted individuals related to FTX.
The aftermath of FTX’s demise in November 2022 is still being felt, and the business is currently navigating bankruptcy proceedings under the direction of its interim CEO, John Ray III.
The cryptocurrency community is anxiously awaiting the outcome of this crucial trial as well as what the future holds for Sam Bankman-Fried and the troubled FTX.
Related: SEC under fire from lawmaker for lack of transparency in Sam Bankman-Fried investigation