FTX Founder’s Bail has been Revoked by US District Judge
- FTX founder Sam Bankman-Fried has been jailed by the US District Court for the Southern District of New York.
- US District Judge Lewis Kaplan has revoked the bail provided to Bankman-Fried on August 11.
- The FTX founder is expected to stay behind bars until the end of his two trials related to fraud.
- SBF was granted bail after the initial December 2022 hearings, and the price was set at $250 million.
The founder and former CEO of one of the largest financial disasters in the history of the United States and the world, Sam Bankman-Fried, also known as SBF in the crypto space, has been put behind bars after a senior United States district judge revoked the crypto entrepreneur’s bail. Under his guidance, crypto exchange FTX went from a valuation of more than $32 million to filing for bankruptcy in November 2022.
The FTX founder’s bail was revoked during a hearing on August 11 in the United States District Court for the Southern District of New York by Judge Lewis Kaplan. Bankman-Fried is expected to remain in jail until the end of his two trials related to fraudulent activities. Interestingly, the prosecutors have been pushing the court for revoke the bail for a very long time.
SBF was granted bail after the initial December 2022 hearings, and the price was set at $250 million. However, many restrictions were also placed on the crypto entrepreneur regarding his movements and access to the internet. However, the FTX founder was found breaching most of his restrictions and making attempts to intimidate witnesses.
Kaplan noted that in an interview with the New York Times, Bankman-Fried spilled crucial information with the likely intention “to hurt and frighten” former Alameda Research CEO Caroline Ellison, who is the star witness in the FTX and Alameda Research bankruptcy cases and is scheduled to testify on October 2.
On the other hand, Bankman-Fried’s legal team accepted that their client had provided the New York Times with some documents, which resulted in Judge Kaplan issuing a gag order preventing extrajudicial statements related to the criminal case.
Additionally, Assistant US Attorney Danielle Sassoon noted multiple times when the FTX founder was found breaching the restrictions imposed by the court on his activities, which included accessing the Signal app and sending a message to FTX US general counsel Ryne Miller in January, using a virtual private network for his internet activity, and releasing information to reporters aimed at intimidating Ellison.
As reported earlier by Bitnation, there are plans to reboot FTX, and the exchange has filed a lawsuit against SBF and other executives, seeking to claw out money.