The tides haven’t turned in favor of Sam Bankman-Fried, the former cryptocurrency mogul. Despite his impassioned arguments and high-priced legal defense, the 2nd U.S.
Circuit Court of Appeals in Manhattan recently solidified the decision to keep him behind bars as he awaits his trial next month. While high-profile cases often come with their share of drama, this one seems to be taking the cake.
Witness Tampering Allegations Sealed His Fate
With a plethora of legal battles under his belt, Sam Bankman-Fried might’ve thought he had seen it all. But the recent appeal court decision threw a cold bucket of reality on his face. The judges concurred with U.S. District Judge Lewis Kaplan, who believed that Bankman-Fried probably tried to manipulate two key witnesses linked to the case.
What caught the court’s particular ire was Bankman-Fried’s audacious act of sharing personal writings of Caroline Ellison, his former flame and ex-chief executive of his Alameda Research hedge fund, with a reporter from the New York Times.
Ellison, who seems to be swimming in remorse, has already admitted to her fraudulent activities and is poised to stand as a witness against her previous partner in both business and romance.
Her penned emotions painted a vivid picture of her turmoil – grappling with job pressures and dealing with the emotional aftermath of her breakup with Bankman-Fried.
The Argument over First Amendment Rights
Sam Bankman-Fried’s defense was crafty, if not slightly desperate. They positioned his interaction with the press as an exercise of his First Amendment rights, a bid to rebuild his tarnished reputation.
But the judges weren’t buying what he was selling. In their eyes, using speech to potentially commit a crime like witness tampering doesn’t get protection from the constitution.
Facing seven hefty charges of fraud and conspiracy following FTX’s catastrophic collapse, Bankman-Fried’s situation looks grim. Prosecutors are on the offensive, alleging that he brazenly siphoned billions from FTX customer accounts.
His supposed splurges? Covering Alameda’s losses, acquiring opulent real estate, and generously funding political campaigns. Although he fervently denies these accusations, he does confess to some failures in risk management.
His current residence, Brooklyn’s Metropolitan Detention Center, hasn’t been the most accommodating. Bankman-Fried bemoans the lack of internet access, claiming it’s stymied his ability to peruse evidence and get ready for the impending trial.
Earlier, Kaplan made another move that probably didn’t sit well with Bankman-Fried. The judge limited the former billionaire’s capacity to summon expert witnesses during the trial.
While his defense team planned to leverage these experts to stress that FTX’s customer funds usage aligned with industry norms, Kaplan wasn’t having it. He rejected three potential witnesses, deeming their testimonies as potentially misleading or irrelevant.
To say that Sam Bankman-Fried is in hot water would be an understatement. His defense strategies are being shot down one after the other, and the walls seem to be closing in.
As the countdown to his October trial begins, the former crypto tycoon will undoubtedly be crafting his next move, but the journey to proving his innocence is looking more treacherous by the day.
