Sam Bankman-Fried, the founder of the now-defunct FTX cryptocurrency exchange, was denied immediate release from a Brooklyn detention facility on Wednesday.
The decision came from the 2nd United States Circuit Court of Appeals in Manhattan ahead of his criminal trial.
Sam Bankman-Fried Lost Bid to Be Freed
Sam Bankman-Fried sought release to better prepare for his upcoming criminal trial slated for October 3. While denying Bankman-Fried’s immediate release request, the 2nd US Circuit Court of Appeals in Manhattan indicated that a forthcoming panel would review the plea.
US District Judge Lewis Kaplan revoked his staggering $250 million bail on August 11, citing likely witness tampering instances. Prosecutors assert that Bankman-Fried pilfered billions from FTX’s customer accounts to offset losses at Alameda Research, his hedge fund.
Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell
The prosecution’s hard stance against him intensified after Bankman-Fried disclosed the personal writings of Caroline Ellison, his former romantic partner and ex-CEO of Alameda Research. He faces charges of fraud and conspiracy, claims he vehemently denies.
Bankman-Fried argues that sharing Ellison’s writings aimed to protect his reputation rather than intimidate her. Ellison is expected to testify against him, intensifying the complicated trial.
“It is unclear how a cooperating witness who has promised to testify against a defendant could be meaningfully threatened by nothing but their own statements being published by a reputable newspaper,” Bankman-Fried’s lawyers wrote.
His legal team highlighted that the current jail conditions have proven inadequate for trial preparation. While Sam Bankman-Fried has been allocated a few hours daily to review evidence on a laptop at the Metropolitan Detention Center in Brooklyn, the arrangements are less than ideal.
For instance, Bankman-Fried lost significant time during mandatory prisoner counts and faced additional constraints over the weekend.
Read more: 15 Most Common Crypto Scams To Look Out For
Responding to these concerns, the US Attorney’s office in Manhattan revealed that the detention center authorized the purchase of a second laptop for Bankman-Fried. Meanwhile, Judge Kaplan signaled openness to considering a trial delay, though the defense has made no formal request.
“If the defendant in good conscience feels that he needs a postponement … they can ask,” Kaplan said.
While a spokesman for Bankman-Fried declined to comment, the crypto market awaits the next chapter in this unfolding saga.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
