FTX Founder Sam Bankman-Fried Denied Bail Amid Fraud Conviction Appeal
Summary:
Sam Bankman-Fried, founder of FTX, was denied bail by a US appellate court while his lawyers appeal his fraud conviction. His alleged attempts to interfere with witnesses during his pretrial phase and the leaking of confidential diaries to The New York Times were critical factors in this decision. Bankman-Fried, convicted on seven counts of fraud and money laundering, will stay in jail awaiting his March 2023 sentencing.
Sam Bankman-Fried, the founder of FTX and a proven fraudster, failed to persuade a US appellate court to release him from jail while his lawyers appeal his conviction. The United States Court of Appeals for the Second Circuit, in their mandate dated November 21, emphasized Bankman-Fried's past attempts to meddle with two witness testimonies during his pretrial release as a primary reason for denying his release demand. The court concluded that the additional points presented by the defence were unconvincing.
Bankman-Fried's appeal for release was dismissed by an American appeals court, following allegations by government prosecutors that he had 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's defence countered by claiming that the New York court didn't take into account his constitutional right to free speech under the First Amendment. Yet, the appellate court held that the New York District Court's judgement was sound, stating that witness interference is not protected by constitutional rights.
The second appeal by Sam Bankman-Fried against his pretrial detention was - quite late - denied by the 2nd Circuit, citing supported evidence of his attempt to tamper with two witnesses.
Additionally, Bankman-Fried's legal team alleged that the District Court didn't consider a less stringent alternative to custody. This claim was dismissed, with the court opining that the District Court "fully evaluated" all pertinent aspects, including Bankman-Fried's conduct during his pretrial release.
On November 2, Bankman-Fried was convicted on seven counts of fraud and money laundering. The ex-CEO of FTX will remain incarcerated until his sentencing hearing, scheduled for March 28, next year.
Published At
11/22/2023 11:25:35 PM
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