The crypto industry was in for a shock when news that founder of FTX, Sam Bankman-Fried, appeared in court last Friday. The former CEO of the flourishing crypto establishment, FTX, and a pivotal character in the sector, seems to be undergoing a turbulent period as he fell foul of the Department of Justice (DOJ) upon allegations of violating his bond terms. The 31-year-old was remanded in custody as we await his trial.
What followed was a series of objectionable actions that are now under scrutiny – attempts at tampering with two witnesses and violations concerning his release on bond. Based on provenance from the DOJ, Bankman-Fried made contact with the previous General Counsel of FTX.US, Ryne Miller, and most unexpectedly, deployed a virtual private network (VPN) to watch a Super Bowl – an act defended by his team arguing the benignancy of such use.
But perhaps the most controversial act of all, landing him in a tougher spot, was the unauthorised disclosure of some confidential diary fragments of ex-Alameda Research CEO, Caroline Ellison, to the New York Times. His defense team, however, denies such action to be witness tampering.
Bankman-Fried’s lawyers have voiced their concerns regarding difficulties in preparing for the upcoming trial due to his jailing. Despite their plea, the gravity of the allegations seemed to have swayed the judge of the U.S. District Court for the Southern District of New York, Lewis Kaplan, who wasn’t convinced.
The ex-FTX mogul faces multi-pronged financial crime charges in his October trial, including securities fraud, wire fraud, money laundering, commodities fraud, and related conspiracy charges. A subsequent trial awaits him tentatively in March next year, with more charges brought forth by the DOJ after his arrest.
As things stand today, pretrial motions from both the defense and prosecution are due on this coming Monday, August 14. The currently brewing drama in the life of Sam Bankman-Fried elicits mixed responses from the industry. His journey has been one of great significance, helping shape and foster the progression of blockchain technology. His current ordeal, however, serves as a stern reminder for players within the crypto market, of the necessity and urgency in upholding rules and integrity when navigating this still maturing sector.
Source: Coindesk
