U.S. prosecutors have requested the pretrial detention of FTX founder and former CEO Sam Bankman-Fried (SBF) ahead of his scheduled trial in October related to the exchange’s collapse. During a court hearing, the prosecutor argued that “no set of release conditions can ensure the safety of the community,” Reuters reports. SBF has been actively communicating with the public and reporters, raising concerns about the potential impact on the case.
During Wednesday’s courtroom proceedings, there were audible gasps when prosecutors expressed their intention to seek the detention of Sam Bankman-Fried. His defense attorney, Mark S. Cohen, revealed that he was informed of this request only one minute before the court session.
Since December, SBF has been under house arrest at his parents’ residence near Stanford University in Northern California, following his release on a $250 million bond.
The U.S. government sought modifications to SBF‘s bail agreement after The New York Times published an article featuring Caroline Ellison. Ellison, also SBF‘s former girlfriend, is a crucial witness for the prosecution and has pleaded guilty to fraud charges. She is expected to testify against him during the trial. SBF recently allowed a Times reporter to view some of Ellison’s private writings, leading prosecutors to accuse him of witness tampering, potentially impacting the jury pool.
According to the prosecution, SBF has engaged in over 1,000 phone calls with journalists since his arrest, with more than 100 calls to the reporter responsible for the Ellison story, some lasting over 20 minutes. Additionally, he has had over 500 calls with author Michael Lewis, who is writing a book about SBF‘s rise and fall as a crypto mogul.
FTX, Bankman-Fried’s cryptocurrency exchange, once dominated the market but collapsed at the end of the previous year. Following the collapse, Bankman-Fried was arrested and charged with orchestrating one of the largest financial frauds in history.
Unlike other high-profile defendants, Bankman-Fried has been actively communicating with the public and reporters, raising concerns about the potential impact on the case.
This is not Judge Lewis Kaplan‘s first time has considered modifying Bankman-Fried’s bail terms. The court agreed to restrict his internet access after discovering he had used an encrypted messaging app to communicate with a former colleague at FTX. The Judge has expressed impatience with SBF‘s behavior and has asked prosecutors why they haven’t proposed even stricter limitations.
At the conclusion of the hearing, Judge Kaplan emphasized that he takes the prosecution’s request seriously and requested it to be submitted in writing by Friday. He directly addressed SBF, advising him to also treat the matter seriously.
