|
thisCrowd - Audio Read
Getting your Trinity Audio player ready...
|
U.S. prosecutors are taking aggressive measures against FTX founder Sam Bankman-Fried, seeking to revoke his bond and incarcerate him before his October fraud trial. They accuse him of repeatedly attempting to influence witness testimony, which they argue poses a threat to the integrity of the trial and the safety of the public.
In a written submission to a federal judge, the Department of Justice (DOJ) follows up on their previous statement of seeking detention for Bankman-Fried. This decision comes after he shared diaries belonging to former Alameda Research CEO Caroline Ellison with the New York Times. Prosecutors claim that this release was intended to harass and potentially influence Ellison’s testimony in court.
The DOJ filing highlights that Bankman-Fried’s actions constitute an attempt to intimidate and corruptly persuade Ellison regarding her upcoming trial testimony. Furthermore, prosecutors assert that these efforts may also extend to influencing or preventing the testimony of other potential trial witnesses, thereby creating an atmosphere of fear and risk for anyone involved.
While acknowledging Bankman-Fried’s right to defend himself publicly, as stated by his attorney Mark Cohen, the DOJ argues that sharing private diary information exceeds the bounds of fair comment and veers into inappropriate territory. They emphasize that defendants have the right to free speech but are not permitted to use it as a means of witness tampering or interfering with a fair trial through public harassment and shaming.
The issue of Bankman-Fried’s bail has been a point of contention. Currently, he has been under house arrest at his parents’ residence in Palo Alto, California, following his extradition from the Bahamas in December 2022. His bail, set at a staggering $250 million bond, came under scrutiny when the New York Times published excerpts from Caroline Ellison’s personal Google documents before FTX’s collapse on July 20.
In response to the prosecutors’ allegations of witness tampering, Bankman-Fried’s spokesperson declined to comment, while his legal team has until August 1 to address the government’s concerns.
The fraud trial centers on Bankman-Fried’s alleged misappropriation of billions of dollars in FTX customer funds to cover losses at his Alameda Research hedge fund, where Ellison formerly served as the CEO. Throughout the legal proceedings, the court will carefully consider the seriousness of the charges and the potential implications of Bankman-Fried’s actions on the trial’s fairness and integrity.
