Judge Lewis Kaplan allegedly has two choices to "modify SBF's bail conditions or even revoke SBF's bail entirely."
The US Department of Justice (DOJ) has reportedly raised questions concerning the bail conditions of Sam Bankman-Fried (SBF), a former CEO and co-founder of crypto exchange FTX.
Allegations of witness tampering and leaking private information have prompted the move, as reported in a July 28th court document.
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Bankman-Fried was initially granted bail on December 22nd, 2022, but he has since sought several modifications to the terms.
Notably, the DOJ court filing states that on January 15th, 2023, SBF attempted to establish a dialogue with FTX US's general counsel through email and messaging platform Signal. The stated aim of this communication was to examine the feasibility of mutually beneficial cooperation.
However, the court filing suggests that the use of Signal was a strategic move aimed at hindering the investigation, given the app's auto-deletion functionality. This raises concerns over possible witness tampering, as inferred from SBF's conduct.
John Reed Stark, the former head of the US Securities and Exchange Commission's Office of Internet Enforcement, weighed in on the situation, stating that the presiding Judge Lewis Kaplan faces several choices. He could interpret SBF's actions as an attempt to improperly influence witnesses, leading him to "modify SBF's bail conditions or even revoke SBF's bail entirely."
Following a hearing in a Manhattan court on July 26th, US Attorney Danielle Sassoon voiced her belief that SBF should lose his bail privileges. Sassoon claims that SBF used his freedom to pressure his ex-partner and former colleague, Caroline Ellison. In addition to making numerous calls to a reporter from The New York Times, Sassoon alleges that SBF attempted to "intimidate" Ellison.
The recent DOJ complaint, dated July 20th, also accuses Bankman-Fried of releasing excerpts from Ellison's personal diary to a journalist in an apparent attempt to undermine the credibility of a witness for the prosecution.
The high-profile case against Sam Bankman-Fried raises significant questions about witness tampering and the misuse of bail conditions. As the cryptocurrency industry watches closely, the court must decide whether the alleged actions warrant a bail revocation.
