Sam Bankman-Fried, one of the co-founders of FTX, has been taken into custody subsequent to a federal judge’s assertion that the crypto entrepreneur, who is currently facing numerous challenges, may have attempted to manipulate two witnesses while out on bail.
In the wake of a hearing held in Manhattan on Friday, US District Judge Lewis A. Kaplan made the decision to rescind bail for the 31-year-old individual. Following this determination, Bankman-Fried proceeded to remove his jacket, tie, and shoelaces, and was promptly restrained with handcuffs by marshals before being escorted out of the courtroom. The emotional scene saw Bankman-Fried’s mother shedding tears in the public gallery, where she found solace in the presence of Bankman-Fried’s father.
Judge Kaplan asserted that Bankman-Fried appeared to have the intention of exerting influence over two witnesses, namely former Alameda Research CEO Caroline Ellison and the former general counsel of FTX. The judge suggested that Bankman-Fried may have sought to pressure these witnesses to “back off” and undermine their cooperation with the government’s investigation. In his pronouncement, Judge Kaplan highlighted that a defendant’s freedom of speech does not provide immunity when it is employed with the aim of facilitating criminal activities.
Promptly in response to the judge’s ruling, legal representatives for the former FTX CEO initiated the process of filing an appeal against the bail revocation. However, their request for a stay on Judge Kaplan’s order was met with a denial.