FTX founder reportedly made roughly 100 calls to a reporter behind The New York Times story that revealed witness’ private messages.
Federal prosecutors have requested that FTX founder, Sam Bankman-Fried be detained on Wednesday.
The request follows consideration by the feds after reports noted that the disgraced founder was accused of intimidating witnesses.
FTX founder accused of intimidating a witness
In a hearing on Wednesday in the US District Court for the Southern District of New York, there were reports that Assistant US Attorney Danielle Sasson requested that Judge Lewis Kaplan revoke Sam Bankman-Fried bail.
The request was made on allegations that the crypto exchange founder used his freedom to intimidate Caroline Ellison, his former romantic partner and colleague. The feds wanted the FTX founder’s house arrest to be reversed and put him behind bars till the end of his trial, which is scheduled to begin on October 2, 2023.
This comes a week after the SBF was accused of witness intimidation and tampering. Bankman-Fried was said to have shared Ellison’s private writings with the New York Times.
“There are no set of conditions short of detention that could satisfy public safety,” Sassoon said, adding Bankman-Fried’s latest actions “crossed the line.”
Ellison and Bankman-Fried once dated, and the piece in NYT described how the split affected Ellison’s views of her career. A detailed analysis of Ellison’s viewpoint while in charge of Alameda revealed that she didn’t feel “well suited” for the position.
By disclosing information to the New York Times, Bankman-Fried, according to Sassoon, attempted to discredit a witness. She claimed it amounted to tampering with witnesses. Ellison, who admitted guilt to offenses related to the collapse of the exchange last year, will testify against Bankmnan-Fried and other individuals in his inner circle.
SBF warned by Judge
Judge Lewis Kaplan warned SBF’s legal team to “better take it seriously” as Federal prosecutors will make arguments on July 28 and his team on August 3.
The failed exchange founder had returned to court severally to address issues relating to his bail conditions, which includes him staying in his parent’s home in California. He’s barred from using VPN, messaging apps, and other specific technology.
After attempting to speak with a former employee of FTX on the ongoing lawsuit earlier this year, the U.S. Attorney for the Southern District of New York, Damian Williams, asked Judge Kaplan to restrict SBF’s access to internet-enabled devices.
Judge Kaplan later prohibited Bankman-Fried from using the technology to speak with FTX employees.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.