A US judge has ordered Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, to remain in jail pending trial on fraud charges.
According to the report, Judge Lewis Kaplan ruled on Friday that there was a “serious risk” that Bankman-Fried would interfere with the trial process if he were released on bail.
Prosecutors had argued that Bankman-Fried had tried to intimidate witnesses expected to testify against him and that he had used a virtual private network (VPN) to try to conceal his communications.
Bankman-Fried’s attorneys had argued that he was not a flight risk and that he had not tried to intimidate witnesses. They also said that his use of a VPN was for legitimate business purposes.
But Judge Kaplan said that the evidence presented by prosecutors was “more than sufficient” to justify revoking Bankman-Fried’s bail.
“The defendant has shown a propensity to engage in conduct that is designed to obstruct justice,” the judge said. “He has shown a willingness to use his wealth and resources to do so.”
In addition to the evidence presented by prosecutors, Judge Kaplan also cited the following factors in his decision to revoke Bankman-Fried’s bail:
- Bankman-Fried’s wealth and resources, which could allow him to flee the country or attempt to influence witnesses.
- Bankman-Fried lack of ties to the community, as he is a recent arrival to the United States and does not own property here.
- Bankman-Fried’s history of making false statements suggests that he is not trustworthy.
Bankman-Fried is accused of misusing money from investors and customers of FTX to pay for personal expenses, such as property and political donations. He has pleaded not guilty to the charges.
His trial is scheduled to begin in October.
The impact of the decision
The decision to revoke Bankman-Fried’s bail is a significant development in the case against him. It suggests that prosecutors believe that he is a flight risk and that he is a danger to the community.
Although the case against Bankman-Fried is complex, there is no guarantee that he will be convicted. However, the decision to revoke his bail is a setback for him and it will make his defense more difficult.
The case is also a reminder of the risks associated with investing in cryptocurrencies. FTX is a major cryptocurrency exchange, and its collapse has had a significant impact on the market.
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