The U.S. Court Of Appeals Rejected Sam Bankman-Fried's Release Plea
The Second U.S. Circuit Court of Appeals in Manhattan has denied a former FTX CEO's plea for pretrial release.
Previously, Sam Bankman-Fried used his right to file a motion to release. A three-judge panel will review the motion. Meanwhile, US District Judge Lewis Kaplan rejected his $250 million bail request. The reason is possible witness tampering. Bankman-Fried will remain in a Brooklyn jail awaiting an October trial.
Prosecutors also cite possible witness tampering, given that Bankman-Fried has attempted this twice in the past. They are confident that the defendant is unlikely to follow the release terms he is requesting.
The denial was also influenced by the recent publication of the personal diaries of Caroline Ellison, the former CEO of Alameda Research. According to prosecutors, Bankman-Fried leaked the personal diaries of his accomplice with the intention of threatening her. However, the defendant himself claims that he did it to protect his reputation.
The defendant's attorneys argued that Bankman-Fried had every right to communicate with Allison, invoking the First Amendment. However, Judge Kaplan stressed that the First Amendment has nothing to do with it, as communication for the purpose of intimidation is a crime. Ellison will testify against Bankman-Fried, which will probably only complicate the trial.
Meanwhile, Sam Bankman-Fried's attorneys still insist that prison conditions are making it difficult for him to prepare for his upcoming trial. However, the defendant was allowed to use a laptop computer daily for preparation. Moreover, the prosecutor's office allowed an additional laptop to be purchased for Bankman-Fried.
Judge Kaplan is also willing to consider a trial postponement if Bankman-Fried requests one.
