Sam Bankman-Fried (SBF), erstwhile main executive of crypto-disaster FTX, who has been awaiting proceedings for his firm's nonaccomplishment while successful location detention pinch his family, has been sent to jailhouse for attempting to intimidate witnesses.
On Friday, astatine a proceeding successful New York City, Judge Lewis Kaplan revoked SBF's bail based connected American prosecutors' interest that SBF was trying to tamper pinch nan pending proceedings by sharing individual writings stored successful Google Docs from Caroline Ellison, erstwhile CEO of FTX-affiliated Alameda Research and a erstwhile romanticist partner, pinch nan New York Times.
Following nan judge's ruling, arsenic noted by Inner City Press, US Marshals removed SBF's jacket, tie, and shoelaces, and took nan erstwhile exec into custody successful handcuffs. He is expected to beryllium taken to nan Metropolitan Detention Center successful Brooklyn, New York.
Shortly aft SBF's apprehension successful The Bahamas successful December, 2022, a period aft nan bankruptcy of FTX, Ellison and Gary Wang, erstwhile CTO and co-founder of FTX, pleaded blameworthy to defrauding FTX investors and agreed to cooperate pinch nan US authorities successful its prosecution of SBF.
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The New York Times, connected July 20, 2023, published an article titled, "Inside nan Private Writings of Caroline Ellison, Star Witness successful nan FTX Case." The article incorporated worldly astir Ellison provided by SBF.
That aforesaid day, authorities prosecutors wrote a letter [PDF] to Judge Kaplan asking him to intervene.
"The defendant’s intent successful sharing these materials is plain," nan US attorneys wrote. "Ellison has pleaded blameworthy to a practice statement and is expected to attest astatine proceedings that she agreed pinch nan suspect to defraud FTX’s customers and investors, and Alameda’s lenders.
"By selectively sharing definite backstage documents pinch nan New York Times, nan suspect is attempting to discredit a witness, formed Ellison successful a mediocre light, and beforehand his defense done nan property and extracurricular nan constraints of nan courtroom and rules of evidence: that Ellison was a jilted person who perpetrated these crimes alone."
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SBF's attorneys based on that SBF's interaction pinch nan property was allowed nether nan First Amendment, a declare nan authorities rejected because witnesser tampering is not protected speech.
Amid nan filings and counter-filings by nan authorities and nan defense anterior to nan hearing, nan Feds besides cited SBF's usage of a VPN, ostensibly to watch sports, which they opportunity thwarted monitoring conditions imposed by nan court.
"There besides is immoderate irony to nan defendant’s declare that nan usage of a VPN is not 'inherently deceptive,' erstwhile his proffered justification for utilizing nan VPN appears to beryllium that it allowed him to deceive nan National Football League and entree a subscription work that does not licence viewing successful nan United States," Uncle Sam's ineligible eagles said successful an August 3, 2023 letter [PDF].
SBF's ineligible squad has already revenge an entreaty to overturn Judge Kaplan's decision. The erstwhile exec faces 2 trials, 1 scheduled for October, and a second, based connected consequent bribery charges, group for March 2024. ®