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Sam Bankman-Fried, founder and former CEO of bankrupt crypto exchange FTX, is headed to jail after his bail was revoked.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