US Justice Division desires Bankman-Fried jailed

• The US Justice Division had filed a grievance towards Sam Bankman-Fried for allegedly tampering with witnesses.
• DOJ final week mentioned Bankman-Fried had tried to discredit Caroline Ellison, a former colleague who’s now a key prosecution witness.
• Whereas US Choose Lewis Kaplan didn’t jail the previous FTX CEO, he allowed events to submit a gag proposal.

Sam Bankman-Fried may find yourself in jail forward of his felony trial set for October after the US Justice Division requested the courtroom to have the disgraced former FTX CEO detained.

Bankman-Fried accused of witness tampering

In its argument throughout a listening to on the matter on July 26, the DOJ mentioned Bankman-Fried has on a number of events defied orders round witness tampering. The prosecution’s transfer comes just a few days after the DOJ accused the previous FTX chief of leaking the non-public diary of Caroline Ellison in an try and discredit her.

As CoinJournal reported final week, allegations of tampering with witnesses towards Bankman-Fried in that occasion associated to a narrative revealed within the New York Occasions and which drew from supplies the federal government mentioned have been from Ellison’s non-public diary.

Ellison is a former colleague of Bankman-Fried’s and was CEO of FTX sister firm Alameda Analysis. She entered a plea cope with the DOJ in alternate for testifying towards SBF.

In response to the prosecution, the federal government has come to the conclusion that the ex-FTX CEO will proceed to intervene with witnesses regardless of the set of launch situations” earlier than him. Final week, the DOJ identified that Bankman-Fried may affect the jury along with his extrajudicial statements.

Whereas his attorneys say sending him into remand would influence the group of his protection, and Choose Lewis Kaplan of the Southern District of New York didn’t instantly grant the DOJ’s prayers, Bankman-Fried has been duly warned to “take this critically.”

The decide has additionally allowed events to work on a gag order, with this more likely to be in place by August 3.

Bankman-Fried was arrested within the Bahamas after the collapse of FTX in November final 12 months. His extradition noticed him safe bail. He faces a number of costs, together with fraud.