New York Federal Prosecutor asked Judge Lewis Kaplan to jail former FTX boss SBF for crossing the line after giving journalists personal writings by Caroline Ellison.
The investigations of FTX and Alameda Research collapse have significantly unraveled the rot that was orchestrated by Sam Bankman-Fried (SBF) in squandering investors’ and customers’ funds. Hiding in the gray areas of blockchain and cryptocurrency, SBF is alleged to have misappropriated billions of dollars through unnecessary actions like political sponsorships, corrupt deals, and high-end marketing. As a result, the United States government has already secured key witnesses to nail SBF with wire fraud charges. Moreover, former FTX top executives, including Caroline Ellison, have pleaded guilty and agreed to testify against SBF in the October 02 hearing.
SBF Fights Back
SBF, who is currently under house arrest in his parent’s home after the court issued him a $250 million bond, has been accused of witness intimidation severally. At one time, SBF is alleged to have sent some text messages to the current FTX CEO John Ray alleging that the company’s United States customers’ funds were intact when he filed for Chapter 11 bankruptcy protection. However, the current FTX administration has denied the allegations citing that only about $5 billion of liquid assets have been recovered out of nearly $30 billion.
Recently, the SBF legal team agreed that SBF communicated with journalists in regard to Ellison. Reportedly, SBF issued the journalists personal writings belonging to Ellison, which has been viewed as witness intimidation.
Federal Prosecutor Calls for SBF Early Jail Term
Following the recent revelations of SBF witness intimidation, Federal Prosecutors in the United States asked Judge Kaplan to order an early jailing of SBF before the scheduled October 02 trial hearing. Notably, Federal Prosecutor Danielle Sassoon told Judge Kaplan during a Wednesday hearing that SBF crossed the line and violated the bond agreement after he communicated with the journalists.
“This latest incident is an escalation of an ongoing campaign with the press that has now crossed a line,” Sassoon said. “No set of release conditions can ensure the safety of the community.”
The detention of SBF is expected to facilitate proper investigations into the FTX collapse, which the prosecutors say the former CEO has the potential to hinder through his public interactions.
Bigger Picture
The United States lawmakers have expedited the process of drafting and discussing crypto laws in a bid to protect investors from predatory crypto projects. Coinbase Global Inc (NASDAQ: COIN) CEO Brian Armstrong has requested American citizens to urge their representatives to vote for the Financial Innovation and Technology for the 21 Century Act happening on Thursday.
Important action you can take to protect the value of your crypto in America:
Today, two House committees started voting to take an important step on legislation that will create regulatory clarity for crypto. They will continue tomorrow. The bill will evolve during the…
— Brian Armstrong (@brian_armstrong) July 27, 2023
Moreover, Armstrong thinks the bill will protect investors, innovation, and national security.
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