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The Jerusalem Post

Bankman-Fried loses bid to get out of jail, appeals court will hear case

 
 Former FTX Chief Executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, leaves following a hearing at Manhattan federal court in New York City, U.S. January 3, 2023.  (photo credit: REUTERS/ANDREW KELLY)
Former FTX Chief Executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, leaves following a hearing at Manhattan federal court in New York City, U.S. January 3, 2023.
(photo credit: REUTERS/ANDREW KELLY)

US District Judge Lewis Kaplan on Aug. 11 revoked Bankman-Fried's $250 million bail after finding that the former billionaire likely tampered with witnesses at least twice.

 Sam Bankman-Fried on Wednesday lost his bid to be freed immediately from a Brooklyn jail so he could prepare better for his criminal trial, less than a month away, over the collapse of his FTX cryptocurrency exchange.

In rejecting Bankman-Fried's request, the 2nd US Circuit Court of Appeals in Manhattan nonetheless said it would ask the next available three-judge panel to consider it.

A spokesman for Bankman-Fried declined to comment.

Witnesses tampering and consequences

US District Judge Lewis Kaplan on Aug. 11 revoked Bankman-Fried's $250 million bail after finding that the former billionaire likely tampered with witnesses at least twice.

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Bankman-Fried quickly appealed, arguing he would be unable to properly prepare for his scheduled Oct. 3 trial from behind bars.

 Sam Bankman-Fried, the founder and former CEO of crypto currency exchange FTX, is escorted out of the Magistrate Court building in Nassau, Bahamas December 21, 2022. (credit: REUTERS/MARCO BELLO)
Sam Bankman-Fried, the founder and former CEO of crypto currency exchange FTX, is escorted out of the Magistrate Court building in Nassau, Bahamas December 21, 2022. (credit: REUTERS/MARCO BELLO)

Prosecutors say Bankman-Fried stole billions in FTX customer funds to plug losses at Alameda Research, his hedge fund.

They pushed for Bankman-Fried to be jailed after he shared the personal writings of Caroline Ellison, Alameda's former chief executive and his onetime romantic partner, with a New York Times reporter.

Bankman-Fried has pleaded not guilty to fraud and conspiracy charges, and said he shared Ellison's writings to defend his reputation, not to intimidate her.


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Ellison is expected to testify against him.

In court papers on Tuesday, Bankman-Fried's lawyers said the arrangement to give him several hours a day to review evidence on a laptop at the Metropolitan Detention Center in Brooklyn has proven inadequate. They said he lost more than four hours on Friday when he had to return to his cell for a prisoner count, and lost more time over the weekend.

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The US Attorney's office in Manhattan said the jail has authorized Bankman-Fried's purchase of a second laptop.

Bankman-Fried's lawyers have not sought to delay the trial. Kaplan said last week that he would consider such a request.

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