FTX founder Sam Bankman-Fried, a former billionaire, has been living under house arrest at his parent’s residence in Palo Alto, California, since he was extradited from the Bahamas in December 2022.
FTX founder Sam Bankman-Fried is facing the possibility of jail time before his fraud trial in October as prosecutors argue that he is attempting to intimidate witnesses and influence their testimony
FTX founder Sam Bankman-Fried bail, secured with a $250 million bond, came into question after the New York Times published excerpts from personal Google documents belonging to his former partner, Caroline Ellison, just before FTX’s collapse.
FTX founder Sam Bankman-Fried admitted to sharing these documents with a Times reporter, prompting the U.S. Attorney’s office in Manhattan to assert that his actions amounted to witness tampering. Prosecutors maintain that while FTX founder Sam Bankman-Fried has the right to speak to the press and defend himself, he crossed the line by trying to corruptly impact substantiations and intrude with a fair trial through public importunity.
FTX founder Sam Bankman-Fried’s defense has until August 1 to respond to the government’s letter, and his spokesperson declined to comment on the situation. He has pleaded not guilty to allegations of embezzling billions of dollars in FTX customer funds to cover losses at his Alameda Research hedge fund, where Ellison served as CEO.
During a Wednesday hearing, prosecutors made a surprise request to detain FTX founder Sam Bankman-Fried before the October 2 trial, during which U.S. District Judge Lewis Kaplan barred him from discussing the case.
His lawyer argued that the communications with journalists were merely an effort to protect his reputation
Caroline Ellison is expected to testify against FTX founder Sam Bankman-Fried at the trial. She previously described being unhappy and overwhelmed with her job and emotionally hurt after her breakup with him.
Gary Wang, and Nishad Singh, have already pleaded guilty in connection with the collapse of FTX and have agreed to cooperate with prosecutors. The case continues to draw significant attention as the trial date approaches.