Appeals Court Rejects Sam Bankman-Fried’s Bid for Release – Sam Bankman-Fried, the founder of FTX and a convicted fraudster, will remain in jail as his attempt to secure freedom during the appeal process was denied by a United States appellate court. The court pointed to allegations of witness tampering as the primary reason for rejecting his release request.
The U.S. Court of Appeals for the Second Circuit, in a mandate dated November 21, cited Bankman-Fried’s efforts to tamper with two witnesses during his pretrial release as a significant factor leading to the rejection of his request. “We have reviewed the Defendant-Appellant’s additional arguments and find them unpersuasive,” the court said.
Government prosecutors alleged that Bankman-Fried leaked Caroline Ellison’s diaries to The New York Times in July, resulting in the revocation of his bail by a New York District Court. Bankman-Fried contended that the New York court overlooked the fact that his actions fell under freedom of speech protected by the First Amendment.
The appellate court, however, said the New York District Court ruled correctly and that witness tampering “falls outside the zone of constitutional protection.” Bankman-Fried’s legal team contended that the district court neglected to explore a less restrictive alternative to detention. However, the court rejected this argument, asserting that the district court had thoroughly examined all pertinent factors.
Including Bankman-Fried’s situation during his pretrial release. On November 2, Bankman-Fried was convicted on seven charges related to fraud and money laundering. The ex-FTX CEO is set to stay in custody until his sentencing on March 28 next year. This verdict marks a significant development in the legal proceedings against him, raising questions about the future of his role in the cryptocurrency industry.