Things seem to be getting worse for Sam Bankman-Fried (a.k.a SBF)- the former C.E.O of the defunct FTX crypto exchange – as a Manhattan court on Friday 11th revoked his bail on the alleged charge of Witness tampering. SBF is being sent back to jail ahead of his trial which is set to begin on October 2nd.
SBF was indicted last year for fraud and as a part of the condition for his bail back then, the Judge cautioned against his speaking to the media or making contact with potential witnesses. Something SBF recently violated when he shared the personal writings of a former business and romantic partner – Caroline Elison -to the New York Times.
Ellison is expected to testify against him when the trial begins. SBF has always been in the media spotlight but his recent feature sparked outrage from the prosecutor. The prosecutor said SBF “crossed a line” when he shared the writings with the New York Times. US Judge Lewis Kaplan ordered to have SBF remanded in prison custody for direct violation.
His Attorney said he will appeal the decision and submitted a motion to delay his detention, but this was denied by the Judge pending the outcome of the appeal. SBF was escorted out of the Courthouse by members of the US Marshal Service in handcuffs, after removing his show laces, jacket, and tie and after emptying the content of his pockets.
SBF is being charged by the US Government for orchestrating one of the largest financial frauds in history. His Crypto exchange -FTX lost over $8 billion of investors’ funds when it collapsed in November 2022. Before the collapse, FTX was one of the largest crypto exchanges and was a huge competitor to Binance Exchange.
Sam has been under house arrest at his parent’s home in Pal Alto. California on a $250m bond he secured in December last year. If convicted of the fraud charges, the former crypto boss risk spending the rest of his life behind bars. SBF is only 31 and was a major influence on many crypto projects.