The U.S. Department of Justice (DOJ) has made a formal request to the court to revoke the bail bond of Sam Bankman-Fried (SBF), the founder and former CEO of FTX, a bankrupt cryptocurrency exchange. The DOJ’s request is based on SBF’s alleged attempts to tamper with witnesses, which could impede the government’s pursuit of a fair trial and the administration of justice.
Attempts to Tamper with Witnesses
According to a letter submitted to Judge Lewis Kaplan of the U.S. Court for the Southern District of New York, SBF reached out to the current general counsel of FTX.US in January after being released on bail in December. SBF used emails and Signal, an encrypted messaging application, to connect with the counsel. Among other things, SBF expressed his desire to rebuild a “constructive relationship” and use each other as resources.
The DOJ highlighted SBF’s history of using Signal for obstructive purposes during the period leading up to his firm’s bankruptcy. Consequently, the court modified his bail conditions to include restrictions on contact with FTX and Alameda Research employees and the use of encrypted or ephemeral messaging applications.
Release of Private Writings
The New York Times recently published an article that delved into the private writings and psychological state of Caroline Ellison, the former CEO of Alameda and SBF’s ex-girlfriend, in the months preceding FTX’s collapse. The DOJ discovered that SBF had leaked these writings to journalists after conducting thorough investigations.
Further examination revealed that SBF had engaged in more than 100 email exchanges and over 1,000 phone calls with members of the media in recent months. Notably, he had multiple lengthy conversations, lasting around 20 minutes, with one of the authors of the New York Times article about Ellison. Additionally, SBF used virtual private networks to conceal his online activities.
The actions of SBF have raised concerns about the safety of witnesses and his willingness to comply with bail conditions, according to the DOJ. Even with a previous gag order in place, which SBF accepted, the U.S. government believes that his detention is necessary before the trial scheduled for October 2, 2023.
In their argument, prosecutors stated that SBF’s repeated attempts to tamper with witnesses demonstrate that no pretrial release conditions can guarantee their safety. This, coupled with his demonstrated non-compliance with bail conditions, solidifies their case for detention.
The DOJ’s Call for Action
The U.S. Department of Justice has formally requested the revocation of Sam Bankman-Fried’s bail bond and the imposition of a detention order due to his alleged witness tampering actions. As the DOJ seeks to protect the integrity of the trial process and ensure the safety of witnesses, it emphasizes SBF’s history of obstruction and violation of bail conditions.
The court will carefully consider the evidence presented and make a decision regarding SBF’s bail bond and detention. If the request is granted, it would mark a significant development in the ongoing case against the founder of FTX.