Updated Aug 11, 2023 - Economy

FTX founder Sam Bankman-Fried jailed

A profile of Sam Bankman-Fried

Sam Bankman-Fried Photo: Stephanie Keith/Bloomberg via Getty Images

Sam Bankman-Fried, founder and former CEO of bankrupt crypto exchange FTX, is headed to jail after his bail was revoked.

Driving the news: The judge listed a series of ways that Bankman-Fried toed the limits of his bail conditions during the hearing Friday afternoon in explaining his decision.

  • U.S. District Judge Lewis Kaplan noted that "there is probable cause to believe that the defendant has attempted to tamper with witnesses at least twice."
  • He said Bankman-Fried's allowing a New York Times reporter come to his home and instead of providing him copies of documents, showed the contents to him was SBF "covering his tracks."
  • Additionally, Bankman-Fried's use of a virtual private network to watch a football game, rather than a television, was "not a big deal in and of itself" but "says something about the mindset," the judge said.

Of note: Bankman-Fried's legal counsel said they intended to appeal.

  • He is expected to remain at the Metropolitan Detention Center in Brooklyn until his trial in October.
  • Bankman-Fried had been under home detention in California at his parents' home since the attorney's office charged him.

Catch up quick: Prosecutors asked the courts last month that Bankman-Fried be detained pending his trial later this year and his bond revoked, following a New York Times article that cited contents of Caroline Ellison's diary provided by Bankman-Fried.

  • "What the defendant may not do, and what he has now done repeatedly, is seek to corruptly influence witnesses and interfere with a fair trial through attempted public harassment and shaming," the Department of Justice said in a court document.
  • Bankman-Fried's attorney responded: "The Government's proffered factual basis to revoke Mr. Bankman-Fried's bail is extremely thin and relies heavily on assumptions, unsupported inferences, and innuendo."

The big picture: Bankman-Fried faces seven existing charges brought against him last year, including wire fraud and money laundering. Prosecutors said on Tuesday that they also intend to file a superseding indictment to add campaign finance law violations.

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