A federal judge has ordered Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, to jail for witness tampering.
Bankman-Fried was arrested in December 2022 on charges of fraud and market manipulation. Prosecutors allege that he stole billions of dollars from FTX customers to cover losses at his hedge fund Alameda Research.
In July, prosecutors asked the judge to revoke Bankman-Fried’s bail, alleging that he had tampered with witnesses in the case. They said that Bankman-Fried had shared personal and intimate documents with the media, including diary pages written by his former romantic partner Caroline Ellison.
Ellison is expected to testify against Bankman-Fried at trial. Prosecutors say that Bankman-Fried shared the documents with the media in an attempt to intimidate her and discourage her from testifying.
Bankman-Fried’s lawyers argued that he had a right to speak to the media and that he had not intended to tamper with witnesses. However, the judge ruled that Bankman-Fried’s actions had crossed the line and that he posed a risk to the integrity of the judicial process.
Bankman-Fried will be held in jail until his trial, which is scheduled to begin in October. He faces up to 20 years in prison if convicted.
The case against Bankman-Fried is a major blow to the cryptocurrency industry. He was one of the most prominent figures in the industry, and his arrest has raised concerns about the safety of cryptocurrency investments.
The case is also a reminder of the risks of fraud and market manipulation in the cryptocurrency market. Investors should be careful about who they invest with and should do their research before investing in any cryptocurrency.