The United States Department of Justice (DOJ) is seeking to revoke Sam Bankman-Fried’s bail, according to a court filing on July 28. The DOJ accuses Bankman-Fried of attempting to tamper with witnesses and leaking Caroline Ellison’s diary to The New York Times.
Bankman-Fried was released on bond on December 22, 2022, but later requested multiple bail modifications. The court filing reveals that on January 15, 2023, Bankman-Fried reached out to the current general counsel of FTX US, using email and the encrypted messaging app Signal.
In this communication, Bankman-Fried expressed a desire to reconnect and explore the possibility of establishing a constructive relationship. He inquired about the potential of using each other as resources or providing mutual input on various matters. However, it is alleged that Bankman-Fried also used Signal for obstructive purposes, taking advantage of the app’s auto-deletion feature to complicate the investigation. The court expressed concerns about the potential risk of witness tampering stemming from Bankman-Fried’s behavior.
John Reed Stark, the former chief of the U.S. Securities and Exchange Commission’s Office of Internet Enforcement, suggests that Judge Lewis Kaplan has several options in response to Bankman-Fried’s actions. Stark believes that the judge may view these actions as an improper attempt to influence witnesses and decide to either modify Bankman-Fried’s bail conditions further or revoke his bail entirely. The judge faces a challenging decision in this case, as allowing Bankman-Fried to remain free could lead to continued intimidation and obstruction.
The court filing comes after a July 26 hearing in a Manhattan court, during which U.S. Attorney Danielle Sassoon requested the revocation of Bankman-Fried’s bail. Sassoon argues that Bankman-Fried used his freedom to intimidate Ellison, his former romantic partner and colleague, and made numerous calls to an NYT reporter. The DOJ also accuses Bankman-Fried of leaking Ellison’s diary with the intention of discrediting a government witness by sharing her personal writings with a reporter.
Judge Kaplan now faces the difficult task of deciding how to proceed. If Bankman-Fried is allowed to remain free, the judge will likely reissue his previous warnings regarding proper conduct. The outcome of this case remains uncertain, and the court’s decision will have significant implications for Bankman-Fried’s future legal proceedings.
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