Sam Bankman-Fried tossed in jail over ex-girlfriend's leaked love letters

Sam Bankman-Fried tossed in jail over ex-girlfriend’s leaked love letters

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Indicted FTX founder Sam Bankman-Fried was hauled off to jail Friday after a federal judge revoked the fallen crypto king’s bail for allegedly leaking his ex-girlfriend’s love letters.

US District Judge Lewis Kaplan sided with federal prosecutors who argued that Bankman-Fried had jeopardized his upcoming trial by leaking the personal writings of his former lover and business associate Caroline Ellison to a New York Times reporter.

Kaplan determined there was probable cause to believe Bankman-Fried had tried to “tamper with witnesses at least twice” since his December arrest for fraud.

Bankman-Fried’s defense attorney Mark Cohen said his team would appeal the incarceration order. Kaplan rejected the defense’s request for an immediate stay pending the outcome of the appeal.

The defense team accused prosecutors of pushing for Bankman-Fried’s jailing based on “innuendo, speculation, and scant facts.”

Bankman-Fried, 31, had been held under house arrest at his parents’ mansion in Palo Alto, Calif. on $250 million bond.

He was shipped off to the Metropolitan Detention Center in Brooklyn, where the former billionaire will be locked up until the start of the trial on Oct. 2.

He has pleaded not guilty of having allegedly misused billions in FTX customer funds to fund a lavish lifestyle and prop up risky bets at Alameda before his cryptocurrency empire collapsed last year.

Sam Bankman-Fried is escorted by court officers from the courtroom.
REUTERS

Sam Bankman-Fried arrives at Manhattan federal court.
Former FTX CEO Sam Bankman-Fried’s bail was revoked during the hearing at Manhattan Federal Court on August 11, 2023.
Getty Images

Joseph Bankman, father of Sam Bankman-Fried, the founder of bankrupt cryptocurrency exchange FTX, leaves the courthouse after SBF was tossed in jail.
Joseph Bankman, father of Sam Bankman-Fried, the founder of bankrupt cryptocurrency exchange FTX, leaves the courthouse after SBF was tossed in jail.
REUTERS

Barbara Fried leaves court on Friday.
Barbara Fried leaves court on Friday.
Brigitte Stelzer

The feds previously stated that the disgraced wonderboy had “crossed a line” and harassed Ellison, the former CEO of Bankman-Fried’s doomed cryptocurrency hedge fund Alameda Research. 

Ellison has already pleaded guilty to fraud and is expected to be a key witness as Bankman-Fried faces trial for allegedly FTX bilking customers out of billions.


AP

Sam Bankman-Fried arrives at Manhattan federal court.
A judge found probable cause that the indicted founder of the bankrupt FTX cryptocurrency exchange tampered with witnesses at least twice.
Brigitte Stelzer

Cohen had said his team had been blindsided by the prosecutors’ motion and argued that Bankman-Fried’s bail terms permitted him to speak with the media.

Cohen reminded the court that Bankman-Fried’s bail terms allowed him to speak with reporters, and to stop that would be infringing on his right to speak to the press. 

Cohen also noted that his client has had “many, many negative stories” published about him and his relationships and argued Bankman-Fried’s media outreach was meant “to protect his reputation” ahead of the trial.


Bankman-Fried goes through security inside the courthouse.
Bankman-Fried is being accused of swindling customers out of billions of dollars.
REUTERS

Sam Bankman-Fried arrives at Manhattan federal court.
The decision could complicate Bankman-Fried’s efforts to prepare for trial.
AP

At a July 26 hearing, Kaplan had restricted Bankman-Fried from speaking publicly about his case, and asked both sides to address whether jail was necessary.

The gag order has drawn attention from news media, including the Times, which in an Aug. 2 letter to the judge said the measure should be loosened to only restrict comments that could interfere with a fair trial.

A July 20 article in the newspaper contained excerpts from Ellison’s personal Google documents prior to FTX’s collapse.


Caroline Ellison
Sam Bankman-Fried is accused of leaking Caroline Ellison’s personal writings.
Twitter / @AlamedaResearch

She described being “unhappy and overwhelmed” with her job and feeling “hurt/rejected” from her personal breakup with Bankman-Fried.

In the writings, which dated back prior to FTX’s downfall, Ellison fretted about her on-again, off-again relationship with Bankman-Fried and its impact on their working environment.

In one entry from February 2022, Ellison reportedly wrote that they risked “making things weird” and “causing drama” at the company and worried that “it doesn’t really feel like there’s an end in sight,” the Times reported.


Caroline Ellison
Caroline Ellison will be a key witness at SBF’s trial.
Twitter

In another post addressed to Bankman-Fried in April 2022, Ellison wrote that an earlier breakup with him had “significantly decreased my excitement about Alameda.”

She added that she “felt too associated with [Bankman-Fried] in a way that was painful.”

Ellison and two other former FTX executives, Nishad Singh, and Gary Wang, have agreed to cooperate in the case against Bankman-Fried. 

Bankman-Fried is alleged to have misused billions in FTX customer funds to fund a lavish lifestyle and prop up risky bets at Alameda.

With Post wires

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Source by [New York Post]

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