In a recent upheaval with potential implications for the crypto community, the Department of Justice (DOJ) has urged a US judge to revoke the bond of Sam Bankman-Fried, the founder of FTX, asserting that his existing bail conditions are inadequate for public safety. This is followed by Bankman-Fried’s decision to publicize the diaries of Caroline Ellison, former Alameda Research CEO.
In its submission, the DOJ alleges that this is more than just Bankman-Fried exercising his right to defend himself, as his lawyer, Mark Cohen, contends. They argue that by revealing Ellison’s private writings, he is attempting to sway her impending trial and intimidate potential witnesses. Thus, they consider his actions to extend beyond the limits of balanced commentary.
These allegations are not viewed lightly by the court. Despite the DOJ’s call for immediate custody, Judge Lewis Kaplan did not order immediate jailing of Bankman-Fried. Yet, the judge insisted on an expedited schedule regarding formal statements from both the defense and prosecution. This marked cautiousness mirrors the judge’s expressed concern over the contact between Bankman-Fried and the press, prompting an interim gag order to prevent communication with the media.
Notably, this is not the first time that Judge Kaplan has voiced concerns over Bankman-Fried’s conduct. Earlier in February, Kaplan cited probable cause for belief in Bankman-Fried’s interactions with Ryne Miller, former FTX.US general counsel, amounting to witness tampering. Such persisting concerns allow room for contemplating the revocation of bail entirely.
With this backdrop, Bankman-Fried is slated to face trial in October on securities and wire fraud charges, and a follow-up trial in March next year concerning bank fraud and bribery allegations.
As always, the crypto world watches closely, recognizing the broader implications this case could have on its landscape. Beyond the individual judgments and repercussions, it underscores the critical need for ethical behavior in handling these ground-breaking technologies, in parallel with the necessity for balanced regulations to maneuver cases of potential misconduct.
Source: Cryptonews
