DOJ Seeks Pre-Trial Detention for FTX Founder Over Witness Tampering Allegations

The US Department of Justice (DOJ) has made severe accusations against Sam Bankman-Fried, the creator of FTX, including charges of attempted witness tampering. The DOJ claims that Sam Bankman-Fried shared records with the New York Times in an apparent effort to harm the reputation of Caroline Ellison, the former CEO of Alameda Research, with whom he had previously been romantically involved.

The DOJ sought Bankman-Fried’s incarceration during a recent federal court appearance, arguing that no release conditions could guarantee the community’s safety. Assistant US attorney Danielle Sassoon represented the DOJ at the hearing.

Judge’s Caution and Legal Deliberations

Judge Lewis Kaplan, who is presiding over the case, voiced worry about Bankman-Fried’s actions, particularly in relation to her interactions with the media. He established a short deadline for written responses on the topic from the prosecution and defense. The DOJ has until Friday to submit its reply, and any further replies must be submitted by Tuesday and/or August 3, respectively.

Mark Cohen, the defense lawyer, refuted the claims by claiming that Bankman-Fried was only seeking to make honest observations about media coverage pertaining to him. The court seemed unconvinced by Cohen’s claims, raising questions about possible witness tampering and connection with media.

A temporary gag order was put into effect to stop Bankman-Fried from speaking to the media or making any public remarks until a final judgment on the revocation of bail was made after the court pleaded with her to take the situation seriously.

The DOJ’s push for pre-trial detention and the defense’s efforts to refute the accusations of witness tampering have intensified the legal conflict involving Sam Bankman-Fried and FTX. The FTX founder’s future is still up in the air as legal processes continue; his criminal trial on a number of counts, including allegations of securities and wire fraud, is set for October.