FTX founder Sam Bankman-Fried has been ordered back to prison by a US federal judge, just two months before his trial on fraud charges. The judge revoked his bail due to alleged attempts to tamper with witnesses.
- Bankman-Fried, 31, has pleaded not guilty to charges of wire fraud, conspiracy to commit money laundering, and election finance violations. These charges are related to the collapse of his cryptocurrency firm, FTX, and its sister trading house Alameda Research.
- US District Judge Lewis Kaplan revoked Bankman-Fried’s bail, citing “probable cause” of attempted witness tampering. The judge determined that there were no conditions of release that would ensure the safety of the community.
- Prosecutors argued that Bankman-Fried’s activities as a source for The New York Times amounted to witness intimidation. They claimed that he intended to portray a cooperating witness in a negative light.
- Bankman-Fried had more than 100 phone calls with a Times reporter, and prosecutors alleged that he crossed a line by attempting to influence potential jurors and intimidate a witness.
- Bankman-Fried is also facing charges related to authorizing bribes to Chinese officials in an attempt to unfreeze trading accounts controlled by Alameda. His trial is scheduled for early October.
- Prosecutors allege that Bankman-Fried cheated investors and misused funds belonging to FTX and Alameda Research clients. The collapse of his companies revealed dangerous interconnections and led to a loss of investor confidence.
- Bankman-Fried, who had been released on $250 million bail and confined to his parents’ California home, now faces a return to prison, which could impact his ability to mount a defense.