SBF, who defrauded hundreds of thousands of cryptocurrency investors and indulged in luxury expenses with customer assets, is going back to prison. Sam, responsible for the November crash that devastated the cryptocurrency markets, caused billions of dollars in losses. As he admitted to selling synthetic cryptos to his customers, FTX founder was officially labeled as a fraudster. Now, prison is looming once again.
Sam Bankman-Fried, the founder of FTX, was rearrested prior to his trial in October on multiple financial crimes, after a federal judge revoked his bail.
The former CEO of the FTX empire, 31-year-old Bankman-Fried, appeared in court on Friday after the U.S. Department of Justice took action to send him back to prison, alleging that he violated the bail conditions by attempting to influence multiple witnesses.
According to the Department of Justice, Bankman-Fried’s contact with former FTXUS general counsel Ryne Miller and his use of a virtual private network to watch the Super Bowl, as stated by the defense team, were enough to warrant a change in bail conditions. However, the final straw came when Bankman-Fried shared parts of former Alameda Research CEO Caroline Ellison’s diary with the New York Times.
At this stage, no one, including the parents of the financially and politically powerful SBF, seems able to save Sam.
Bankman-Fried’s defense team admitted that he shared some pages of the diary with the Times, but they objected to the accusation that he was trying to influence a witness. The defense team also argued that Bankman-Fried’s imprisonment would further hinder his preparation for the trial.