In a dramatic turn of events, Samuel Benjamin Bankman-Fried, famously known as SBF and the mastermind behind FTX, has been recently ordered to serve time behind bars after a judge revoked his bail application on charges of alleged witness tampering. Since then, the legal team representing the embattled co-founder has been fighting against his imprisonment.
But now, the Department of Justice [DOJ] prosecutors have delivered a resounding response to the assertions made in SBF’s appeal, affirming their stance on denying bail. They dismissed the appeal as devoid of merit, highlighting the looming specter of witness tampering and asserting that no conditions of release could guarantee the safety of these crucial witnesses.
Prosecutors forcefully argued that SBF’s transgressions went beyond a single instance of witness tampering. They accused him of not only attempting but also successfully engaging in such actions twice, brazenly flouting court orders. Consequently, they contended that, given his prior conduct during pre-trial proceedings, he was highly unlikely to comply with any conditions of release.
The first breach occurred when SBF attempted to contact witnesses in January of this year, a group that notably included the former General Counsel of FTX.US, a potential trial witness with legal representation.
However, it was the second, more widely publicized incident of alleged witness tampering that sent shockwaves through legal circles. This was the sensational leak of the personal journal belonging to SBF’s ex-girlfriend and former associate, Caroline Ellison, as exposed by The New York Times in July 2023. To add a layer of ignominy, SBF’s own legal counsel’s confirmation of his involvement in the press leak sealed the deal.
SBF Awaits A Tough Legal Battle
The prosecutors wasted no time in pinning the blame squarely on SBF, alleging that he secretly provided private and potentially damaging excerpts from Ellison’s journal with the intent to discredit her and possibly influence the jury’s perception when the trial commenced. This became the linchpin of their appeal to revoke SBF’s bail, a plea that had been granted on August 11.
Until his incarceration, the former FTX CEO had been out on bail secured by a staggering $250 million bond since December 2022. Meanwhile, his legal defenders staunchly maintained that their client’s communication with the press regarding Ellison was constitutionally protected under the First Amendment, setting the stage for a fierce legal battle.