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BREAKING NEWS

Jailed: Disgraced FTX Co-Founder Sam Bankman-Fried's $250 Million Bail Revoked After 'Leaking' Ex's Private Notes

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Source: ZUMAPRESS.com / MEGA

Aug. 11 2023, Published 5:23 p.m. ET

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A judge has sent disgraced FTX co-founder Sam Bankman-Fried to jail and revoked his $250 million bail in a shock decision just weeks before his fraud case is set to go to trial, RadarOnline.com has learned.

"He has gone up to the line over and over again," Judge Lewis A. Kaplan of Federal District Court in Manhattan said on Friday, putting an end to Bankman-Fried's house arrest at his parents' address in Palo Alto, California.

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The former cryptocurrency billionaire is currently facing over 100 years behind bars for charges related to the collapse of his hedge fund. He has pleaded not guilty to 13 counts of fraud, conspiracy, making illegal campaign contributions, and foreign bribery.

Prosecutors had previously accused Bankman-Fried of leaking private notes of his former girlfriend and business partner, Caroline Ellison, to the New York Times.

"There is probable cause to believe that the defendant has attempted to tamper with witnesses at least twice," Kaplan said at the hearing.

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In one of the exchanges, she had candidly opened up about being "unhappy and overwhelmed" with her role as CEO of Alameda Research. "At the end of the day I can't wait to go home and turn off my phone and have a drink and get away from it all."

A separate Google doc addressed to Bankman-Fried in April 2022 shed light on how she coped after they split, noting the change "significantly decreased my excitement about Alameda."

"I felt pretty hurt/rejected," she admitted. "Not giving you the contact you wanted felt like the only way I could regain a sense of power."

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Prosecutors accused Bankman-Fried of giving the NYT her notes to "interfere with a fair trial by an impartial jury" in a letter sent to Kaplan on Thursday.

"By selectively sharing certain private documents with the New York Times, the defendant is attempting to discredit a witness, cast Ellison in a poor light, and advance his defense through the press and outside the constraints of the courtroom and rules of evidence: that Ellison was a jilted lover who perpetrated these crimes alone."

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Bankman-Fried's lawyers, however, plan to fight back with an appeal after the latest development.

Ellison, for her part, had pleaded guilty in December to multiple counts of conspiracy and fraud and was said to be cooperating with authorities. Ellison is slated to serve as a star witness in the criminal case against Bankman-Fried.

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