INSUBCONTINENT EXCLUSIVE:
NEW YORK: A US judge on Friday canceled Sam Bankman-Fried's bail, citing reasonable suspicion that the charged creator of the insolvent FTX
cryptocurrency exchange had attempted to influence witnesses on at least two occasions.The verdict was delivered by US District Judge Lewis
Kaplan during a hearing held in a federal court in Manhattan, a mere two months ahead of the planned October trial for fraud."He has already
- without violating any other bail condition save that he not commit another crime - gone up to the line over and over again," Kaplan said
in a hearing in Manhattan federal court."There is no condition or combination of conditions of release that will assure that the defendant
will not pose a danger to other persons or the safety of the community," the order said
Bankman-Fried "crossed a line toward improperly influencing those prospective jurors and intimidating a witness and sending a message to
other prospective witnesses," it said
"Witness tampering is not constitutionally protected speech."With a downcast expression, Bankman-Fried bowed his head as Judge Kaplan
meticulously expounded upon his decision
The judge contended that Bankman-Fried had relentlessly pushed the boundaries of his $250 million bail agreement to a degree where Kaplan
could no longer guarantee the safety of the community, including the security of witnesses for the prosecution, unless the 31-year-old
entrepreneur was incarcerated.In the courtroom gallery, Bankman-Fried's parents, who are both law professors at Stanford University, were in
His mother, Barbara Fried, tearfully nodded at him as he departed
His father, Joseph Bankman, placed his hand over his heart while observing his son's departure.Following the conclusion of the proceedings,
Bankman-Fried removed his suit jacket and tie, surrendering his watch and personal belongings to his legal representatives
The sound of handcuffs clinking was audible as his hands were restrained in front of him
US marshals then led him out of the courtroom.The moment marked a stunning descent for a figure who had presented himself as a
"cryptocurrency industry savior," testifying before Congress and enlisting the endorsements of celebrities like Larry David, Tom Brady, and
Stephen Curry to promote his enterprises.Prosecutors alleged that Bankman-Fried misappropriated billions of dollars in FTX customer deposits
to finance his businesses and speculative investments, contributing significant sums to charitable causes, and making unlawful political
contributions to both Democrats and Republicans
These contributions were ostensibly aimed at influencing cryptocurrency regulation in Washington.Judge Kaplan asserted that there was
substantial cause to believe Bankman-Fried had engaged in at least two instances of witness tampering since his arrest in December
One involved showing a journalist the private writings of a former girlfriend, a key witness against him, while the other pertained to an
encrypted communication with FTX's general counsel in January.The judge concluded that it was probable that Bankman-Fried had endeavored to
sway not only potential trial witnesses but also other undisclosed individuals, urging them to withhold cooperation with the government or
to retract their support.The order for incarceration, signed by Judge Kaplan, cited probable cause to suspect Bankman-Fried of committing
the federal offense of attempted witness tampering.Bankman-Fried's legal team maintained that their client's intentions were innocent,
contending that he should not be imprisoned for seeking to safeguard his reputation amid a barrage of negative news coverage.Attorney Mark
Cohen appealed to the judge to suspend the incarceration order for an immediate appeal, but the request was denied
Within an hour, Bankman-Fried's defense lawyers filed a notice of appeal.Bankman-Fried spent the night at the Metropolitan Detention Center
in Brooklyn, a facility that previously housed figures such as "pharma bro" Martin Shkreli and convicted sex offenders R
Kelly and Ghislaine Maxwell.Previously under house arrest at his parents' residence in Palo Alto, California, Bankman-Fried's bail
conditions imposed stringent restrictions on his internet and phone usage.Judge Kaplan noted that these strictures did not prevent
constructive relationship." The judge interpreted this communication as potentially indicative of Bankman-Fried's involvement in or attempt
to commit a federal felony while on release.In the preceding weeks, prosecutors surprised Bankman-Fried's legal team by petitioning for his
imprisonment, alleging that he had violated these rules by sharing private writings of his former girlfriend, Caroline Ellison, with The New
Prosecutors argued that this was an attempt to tarnish her reputation and influence potential jurors for his upcoming trial in October.Judge
Kaplan maintained that the excerpts of Ellison's communications shared by Bankman-Fried were of a nature that one would typically refrain
from sharing, except with the intention to harm, discredit, or intimidate the subject.Ellison, who had previously served as CEO of Alameda
Research, a cryptocurrency trading hedge fund connected to Bankman-Fried, had pleaded guilty in December to charges carrying a potential
prison sentence of 110 years
She had agreed to cooperate as a witness against Bankman-Fried in exchange for a potentially lighter sentence.Bankman-Fried's defense team
argued that their client's attempt to defend his reputation had likely backfired, as the article ended up portraying Ellison in a
They also accused prosecutors of presenting evidence based on "innuendo, speculation, and scant facts" in their bid to have him
incarcerated.Following the prosecutors' detention request, Judge Kaplan imposed a gag order on trial participants, prohibiting them from
However, a lawyer for The New York Times noted the First Amendment implications and the public interest in Ellison's case and her
cryptocurrency trading firm.(With inputs from agencies)
