Judge Says SBF Might Return to Jail Before His Trial

As the trial of Sam Bankman-Fried the founder of bankrupt  FTX continues, a recent court hearing has insinuated that the failed entrepreneur might be thrown back in jail if he continues to violate court orders.

According to Judge Lewis Kaplan, the Federal Judge in charge of SBF’s criminal fraud case, he had “probable cause” to believe that SBF may have meddled with the case by engaging in witness tampering which is a felony.

Federal prosecutors have claimed that SBF used a virtual private network (VPN) while watching the Super Bowl which is a violation of a previous order forbidding him from using encrypted technology. Therefore the prosecutors have called for stricter measures which include restricting the 30-year-old’s use of cell phones, computers, and the internet in order to keep him in check.

However, Kaplan said returning the failed crypto entrepreneur to jail while he awaits trial might be the only way to prevent him from accessing electronic devices even though he admits that the hearing was not a bail revocation hearing. 

In his defense, SBF’s lawyer Mark Cohen said his client’s use of the VPN was an oversight and not an intentional transgression. He further described the measure as draconian adding that Bankman-Fried needs access to the internet and other applications to prepare for his trial.

The judge has now given both the prosecutors and SBF’s lawyer till Tuesday to work out new guidelines for SBF’s bail condition. Recall that the prosecutors have earlier sought to have SBF’s bail conditions altered he sent an encryption message to one of the witnesses. The prosecutors worry that sam could manipulate witness testimony if allowed access to the witnesses

Judge orders release of the Identities of SBF Sureties

Although SBF has continuously maintained that he did not steal users’ funds even though he admitted that his trading firm was not properly hedged against market exposure, he was arrested in the Bahamas on charges of wire fraud and money laundering amongst others. He was later released on a $250 million bail bond after his extradition to the United States.

After petitions from several media outlets, Kaplan ordered the release of the documents that contained the identities of the sureties that co-signed Bankman-Fried’s bail bond. Interestingly the two sureties Larry Kramer and Andreas Paepcke share some connections with Bankman-Fried’s parents with which he currently lives.