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The U.S. Department of Justice (DOJ) has filed a request to revoke the bail bond of Sam Bankman-Fried (SBF), the founder and former CEO of the insolvent cryptocurrency exchange FTX, and to impose a detention order against him due to his attempts to interfere with witnesses.
In a letter presented to Judge Lewis Kaplan of the U.S. Court for the Southern District of New York, the DOJ stated that SBF’s actions to tamper with witnesses in his fraud case would disrupt the rights of the government and the public to a fair trial and the proper administration of justice.
SBF’s Witness Tampering Attempts
The DOJ revealed that following SBF’s release on bail in December, he contacted the current general counsel of FTX.US in January via emails and the encrypted messaging platform Signal. Among other matters, SBF indicated his intention to reconnect with the counsel and foster a “constructive relationship” that would involve utilizing each other as resources when feasible.
The Justice Department noted that SBF had a history of employing Signal for obstructive purposes in the years leading up to his company’s bankruptcy. Consequently, the court modified his bail conditions, prohibiting any contact with employees of FTX and Alameda Research, as well as the use of encrypted or ephemeral messaging applications.
The New York Times recently released an article discussing the private writings and psychological state of Caroline Ellison, the former CEO of Alameda and SBF’s ex-girlfriend, in the months preceding FTX’s collapse. Following multiple investigations, the DOJ discovered that SBF had shared these writings with journalists.
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A more thorough investigation revealed that in recent months, SBF had sent over 100 emails and participated in more than 1,000 phone calls with members of the media. He also engaged in over 100 phone calls with one of the authors of the New York Times article about Ellison, with several calls lasting approximately 20 minutes. Additionally, the FTX founder utilized virtual private networks to mask his online activities.
DOJ Wants SBF Detained Ahead of Trial
The DOJ asserts that SBF’s actions demonstrate that no pretrial release conditions can guarantee the safety of witnesses and that he is unlikely to comply with his bail conditions.
Prosecutors have already requested a gag order, which SBF agreed to last week, to prevent any further witness tampering. Nevertheless, the U.S. government seeks his detention prior to his trial set for October 2, 2023.
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