Judge Denies Bail to Bankman-Fried and Sends Him to Jail

Sam Bankman-Fried, the founding figure of FTX, now finds himself behind bars as Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York decided to rescind his bail. The decision was rooted in allegations that Bankman-Fried may have interfered with potential witnesses.

The Department of Justice claimed that Bankman-Fried violated his bond’s terms, notably attempting to contact former FTX.US legal head, Ryne Miller. He also used a virtual private network (VPN) which, according to his lawyers, was merely to stream the Super Bowl. These allegations made Judge Kaplan believe Bankman-Fried often pushes boundaries, mentioning, “All things considered I’m going to revoke bail.” Judge Kaplan elaborated further, “My conclusion is there is probable cause to believe the defendant has attempted to tamper with witnesses at least twice. … There is a rebuttable presumption that there is no set of conditions that will ensure Bankman-Fried will not be a danger.”

Witnessing these developments, Bankman-Fried’s parents, Barbara Fried and Joseph Bankman, were visibly shaken in court. Barbara was especially emotional after hearing the judge’s final decision.

During the court session, Judge Kaplan expressed concerns about Bankman-Fried’s actions. Using a VPN, he noted, hinted at a certain intent, even if the act wasn’t substantial by itself. Defending Bankman-Fried, his lawyers contested the allegation of witness tampering, and stated, “Here we have a very thin record with a lot of spin.” They also pointed out the challenges in preparing for the trial if their client remained detained. However, Judge Kaplan remained unswayed, believing the predicament wasn’t “quite the insurmountable problem.”

Assistant U.S. Attorney Danielle Sassoon emphasized the need to detain Bankman-Fried. His frequent New York visits raised concerns about a lack of oversight. Sassoon remarked, “He’s effectively unsupervised while he’s here.” The DOJ also had fallback plans in case the judge declined the detention request, including house arrest with stringent access restrictions. This would have limited Bankman-Fried’s internet access, even blocking platforms like Google Drive, where crucial files for the case resided.