FTX founder Sam Bankman-Fried's bail revoked, sent to jail
Sam Bankman-Fried, the founder of FTX, has been ordered to return to prison by a US federal judge for allegedly violating his bail conditions and tampering with witnesses. He is facing charges of wire fraud, money laundering, and election finance violations. Bankman-Fried's trial is set to begin in early October. The judge's decision was based on "probable cause" that Bankman-Fried had attempted witness tampering.
Bankman-Fried is said to have misappropriated client funds
The pressed charges are related to the collapse of Bankman-Fried's cryptocurrency firm, FTX. FTX and its sister trading house, Alameda Research went bankrupt in November 2022. The bankruptcy led to the dissolution of the virtual trading business that was once valued at $32 billion. Prosecutors assert that Bankman-Fried defrauded investors and misappropriated client funds from both FTX and Alameda Research.
Bankman-Fried was released on $250 million bail
Prosecutors argued that Bankman-Fried's involvement with the New York Times as a source constituted witness intimidation. They pointed to an article that featured private writings from Caroline Ellison, a former Alameda Research employee. Ellison is a cooperating witness in the government's case. Before this ruling, Bankman-Fried had been released on $250 million bail and was under house arrest at his parents' home in California.
