FTX Founder Sam Bankman-Fried Denied Temporary Release by U.S. Federal Judge

The creator of FTX, Sam Bankman-Fried, will stay in detention as a U.S. federal judge rejected his plea for a temporary release. This choice was made in response to a number of motions made by Bankman-Fried’s defense team to release him pending trial.

A Legal Battle for Temporary Release

Bankman-Fried’s condition was found to be a product of his own conduct, ultimately leading to the denial of his petitions for pretrial release, according to a judgement made by Judge Lewis Kaplan. After his original arrest, the former FTX CEO had been freed on bail. Judge Kaplan, however, revoked his release last month after finding that the defendant had made at least two attempts to obstruct witnesses.

Two of Bankman-Fried’s attorneys, Mark Cohen and Christian Everdell, had fervently advocated for his short-term release. They argued that his defense needed access to crucial discovery materials, which were mostly accessible through internet databases. Bankman-Fried also required the capability of working with others on a shared document explaining his legal work.

Prosecutors and defense lawyers have been arguing back and forth about Bankman-Fried’s access during the previous three weeks. He had everyday access to computers, hard drives, and the internet, according to the Department of Justice. The defense, however, countered that this degree of access was insufficient and was impeding their client’s ability to fully prepare his defense.

The Judge’s Decision

Judge Kaplan was not persuaded despite these defenses. He claimed that none of the defendants, including Bankman-Fried, had a natural right to see every item of generated material.

In his decision, Judge Kaplan made clear that Bankman-Fried was already being defended by a sizable group of very competent attorneys. He also dismissed claims that the defendant needed more time each day to concentrate on his defense.

The court granted the requests of the prosecution and defense for a September or October trial date. The trial is now slated to begin on October 3, but he pointed out that the defense might ask for a postponement.