Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

U.S. judge rejects bail proposal for FTX founder Bankman-Fried

Published 02/07/2023, 11:18 AM
Updated 02/07/2023, 03:11 PM
© Reuters. FILE PHOTO: Former FTX Chief Executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, arrives on the day of a hearing at Manhattan federal court in New York City, U.S. January 3, 2023.  REUTERS/David

By Luc Cohen and Jonathan Stempel

NEW YORK (Reuters) -A federal judge on Tuesday rejected a proposal to modify Sam Bankman-Fried's bail conditions, despite an agreement between the FTX cryptocurrency exchange founder and prosecutors to address potential witness tampering concerns.

U.S. District Judge Lewis Kaplan in Manhattan did not provide reasons for the denial, and said a hearing on bail remains scheduled for Feb. 9.

A spokesman for Bankman-Fried declined to comment. The office of U.S. Attorney Damian Williams in Manhattan also declined to comment.

Bankman-Fried, 30, has been free on $250 million bond and living in Palo Alto, California, with his parents, who guaranteed the bond, since pleading not guilty to looting billions of dollars from the now-bankrupt FTX.

On Tuesday afternoon, he formally appealed Kaplan's Jan. 30 ruling granting a request by 11 media outlets including Reuters to reveal the names of two other people guaranteeing his bail.

Bankman-Fried has said his parents, both Stanford Law School professors, had been harassed and received physical threats since FTX's collapse, and there was "serious cause for concern" the additional guarantors might suffer similar treatment.

Prosecutors had asked last month to tighten bail, citing Bankman-Fried's efforts to contact both the general counsel of the FTX U.S. affiliate and new FTX Chief Executive John Ray, ostensibly to provide assistance.

Their proposed conditions would prevent Bankman-Fried from talking with most employees of FTX or his Alameda Research hedge fund without lawyers present, or using encrypted messaging apps such as Signal.

On Monday, Bankman-Fried's lawyer Mark Cohen said his client and prosecutors would allow communications with a specific set of employees, pending Kaplan's approval.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

That agreement would also ban Bankman-Fried from using Signal, but let him communicate by phone, email, text message, Zoom and FaceTime, as well as WhatsApp if he installed monitoring technology.

Bankman-Fried would have also withdrawn his objection to a bail condition preventing him from accessing FTX, Alameda or cryptocurrency assets.

His lawyers had originally proposed banning contact only with certain potential witnesses like former Alameda chief Caroline Ellison and former FTX technology chief Zixiao "Gary" Wang, who have pleaded guilty to fraud and are cooperating with prosecutors.

Separately, prosecutors on Tuesday asked another judge to put on hold Securities and Exchange Commission and Commodity Futures Trading Commission civil lawsuits against Bankman-Fried until the criminal case ended.

They cited the cases' substantial overlap, and the risk Bankman-Fried could gather evidence in the civil cases to help his criminal defense.

Latest comments

What are the chances this crook will end up in jail?
FEC data show Democrats got the wide majority of money from SBF and his executives.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.