FTX founder Sam Bankman-Fried was led out of a federal courtroom in handcuffs on Friday after a judge revoked his bail. The decision was made following the judge’s conclusion that the cryptocurrency mogul had engaged in repeated attempts to influence witnesses against him. Marking a dramatic development in the ongoing legal proceedings.
Bankman-Fried appeared visibly downcast as Judge Lewis A. Kaplan articulated his reasons for revoking the bail. The judge stated that Bankman-Fried had repeatedly pushed the boundaries of his $250 million bail package. However, to a degree that compromised the safety of the community, including the protection of prosecutors’ witnesses. Consequently, Judge Kaplan determined that incarceration was necessary to ensure accountability.
Post the hearing, Bankman-Fried, having removed his suit jacket and tie, relinquished his personal belongings to his legal team. The sound of handcuffs could be heard as his hands were restrained in front of him. He was escorted out of the courtroom by U.S. marshals.
This turn of events signifies a significant fall for Bankman-Fried, who had presented himself as a saviour of the cryptocurrency industry. He testified before Congress and even enlisted the support of high-profile celebrities. Like Larry David, Tom Brady, and Stephen Curry to promote his business ventures.
Attempts at Influencing Witnesses
Prosecutors have alleged that Bankman-Fried illicitly appropriated billions of dollars in FTX customer deposits to finance his businesses. Speculative investments, charitable donations, and unlawful campaign contributions to both Democratic and Republican parties. These contributions were intended to exert influence over cryptocurrency regulations in Washington.
Judge Kaplan, referring to the evidence, highlighted that there was probable cause to believe that Bankman-Fried had attempted to tamper with witnesses. On at least two separate occasions since his arrest in December. One incident involved showing a journalist the private writings of a former girlfriend and key witness against him. In January, he had communicated with FTX’s general counsel through encrypted means.
The judge underscored that there was a likelihood that Bankman-Fried’s attempts to influence anticipated trial witnesses. However, extended to others whose identities were not yet known. Meanwhile, these actions were interpreted as efforts to deter cooperation with the government.
