Federal Prosecutors Seek Bail Revocation for Former FTX CEO Ahead of Trial

Former FTX CEO, Sam Bankman-Fried, is facing a new legal challenge as federal prosecutors have requested that his bail be revoked. At the same time, he awaits trial, reported by the Associated Press on July 26. Prosecutors alleged that Bankman-Fried leaked the personal writings of Caroline Ellison, former CEO of FTX’s sister firm, Alameda Research, to the New York Times. Ellison is set to act as a witness at Bankman-Fried’s trial, and prosecutors argued that his alleged information sharing amounted to witness tampering, prompting their demand for imprisonment.

Bankman-Fried’s lawyer asserted his client’s not-guilty plea and revealed that the incarceration request was communicated just moments before the latest hearing. Judge Lewis A. Kaplan has given both sides time to submit written arguments, expressing his concern for the government’s interests and Bankman-Fried’s First Amendment rights.

This is not the first time the possibility of Bankman-Fried’s incarceration has been discussed. Prosecutors and his legal team had previously agreed on communications restrictions after he allegedly attempted to bypass electronic communication constraints. His trial is scheduled to begin on October 2, 2023, and he currently faces 13 charges, with a potential prison sentence of up to 115 years if convicted.

Until the trial date, Bankman-Fried will remain on his $250 million bail and under house arrest at his parent’s home in Palo Alto, California. FTX, which experienced a run on accounts and collapsed in November 2022, is now undergoing bankruptcy proceedings and is under the leadership of its replacement CEO, John Ray III.