At the end of last year, major crypto exchange FTX collapsed. FTX founder and former CEO Sam Bankman-Fried faces serious allegations. However, until recently he was allowed to wait for his trial in his parents’ house. However, this is now over as SBF’s bail has been revoked. That means the ousted CEO must go to jail immediately. The reason for this is the alleged falsification of evidence, Reuters said.
FTX’s Bankman-Fried has been jailed for alleged witness tampering pic.twitter.com/CYaRYkn5c1
— Reuters US News (@ReutersUS) August 12, 2023
Crypto boss still ends up in jail
Earlier this month, the prosecutor in the case requested that Bankman-Fried’s release on bail be quashed. So the judge complied. The judge concludes that there are reasonable grounds to believe that Bankman-Fried pressured potential witnesses on at least two occasions.
Months ago, he tried to get in touch with former colleagues to “exchange information” and “help each other”. This severely restricted him. For example, he was no longer allowed to use news services and his internet access was severely restricted. Apparently that wasn’t enough.
The specific reason for the bail withdrawal is that Bankman-Fried shared the diary of former colleague and love partner Caroline Ellison with a New York Times journalist. The judge finds that Bankman-Fried often crossed the line. But with this action he really went too far, according to the judge.
Ex-CEO of FTX: From Messiah to Schlemiel
The court also declined an appeal against the verdict. As previously mentioned, the trial of the former FTX boss will begin in October. Bankman-Fried is accused of billions in fraud. For example, he stole billions in customer money to keep his hedge fund Alameda Research afloat. He still maintains his innocence.
Ellison was the head of Alameda Research and is expected to testify against him in October. Other former FTX figures will also testify against Bankman-Fried. All in all, things are looking very bleak for the former crypto messiah.