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FTX co-founder Sam Bankman-Fried sent to prison after judge revokes bail

Speed News Desk | Updated on: 12 August 2023, 9:39 IST
FTX co-founder Sam Bankman-Fried sent to prison

News Summary: 

  • FTX co-founder Sam Bankman-Fried sent to jail as bail is revoked.
  • Allegations surround Bankman-Fried's attempts to influence trial witnesses.
  • Bankman-Fried had been under house arrest following December arrest.
  • Judge Kaplan cites repeated boundary-crossing as reason for revoking bail.
  • Bankman-Fried escorted to Metropolitan Detention Center in Brooklyn.

New York: In a significant development, Sam Bankman-Fried, the co-founder of FTX, a prominent cryptocurrency exchange, was sent to jail after a federal judge revoked his bail. The move comes amidst allegations that Bankman-Fried attempted to manipulate potential witnesses scheduled to testify against him in an ongoing trial.

House Arrest Terminated

Bankman-Fried had been residing under house arrest at the residence of his parents in California since his arrest in December on charges related to fraudulent activities linked to FTX's collapse. However, Judge Lewis A. Kaplan of the Federal District Court in Manhattan decided to terminate this arrangement.

Obstruction Allegations and Legal Consequences

The decision followed assertions by prosecutors that Bankman-Fried had made two separate attempts to obstruct witnesses involved in the case, one of which involved providing documents to journalists. Judge Kaplan, in making his decision, emphasized, "He has repeatedly skirted the boundaries, and I find it necessary to revoke his bail."

Handcuffed and Escorted

As the verdict was announced, two US marshals readied themselves to apprehend Bankman-Fried, who was then escorted out of the courtroom. His mother, Barbara Fried, along with his father, attempted to approach him, but a court officer advised them to maintain a distance.

Metropolitan Detention Center

Subsequently, Bankman-Fried was transported to the Metropolitan Detention Center in Brooklyn, marking a notable turn of events in the ongoing legal proceedings.

First published: 12 August 2023, 9:39 IST