Sam Bankman-Fried, a prominent name in the financial sector, has been incarcerated. The decision came on Friday, after US District Judge Lewis Kaplan heeded prosecutors’ recommendations. They claimed that Bankman-Fried attempted to intimidate trial witnesses. Prior to this, he was under house arrest in California.
Concerns About VPN Use and Confidential Document Leaks
While under house arrest, suspicions arose regarding Fried’s use of a private VPN. This deepened when he allegedly shared confidential documents of Caroline Ellison with the New York Times. Prosecutors believe this to be part of a broader media strategy he was implementing.
Judge Kaplan’s Verdict
Taking all the facts into account, Judge Kaplan stated, “Considering everything, I’m revoking bail.” Bankman-Fried has denied the numerous charges against him, which include conspiracy and fraud. His trial, set for October, is drawing significant attention, and has been called one of the most significant fraud cases in US history.
Post-Hearing Developments
As proceedings wrapped up, Bankman-Fried handed over his suit jacket, tie, watch, and other personal items to his legal team. The distinct sound of handcuffs echoed in the courtroom as they were fastened around his wrists. U.S. marshals then escorted him out.
Allegations Surrounding Bankman-Fried
The core accusation against him is the embezzlement of billions from FTX customer accounts. These funds allegedly served multiple purposes, from sustaining his businesses and high-risk investments to making charitable contributions. Moreover, he reportedly spent large sums on illegal political donations to both major US parties, aiming to sway crypto regulations in his favor in Washington.
Kaplan has reason to believe that Bankman-Fried interfered with witnesses on at least two occasions since his arrest in December. One such incident involved sharing a former girlfriend’s private writings with a journalist, and the other saw him contacting FTX’s chief legal officer through encrypted means.
