The post FTX Founder Sam Bankman-Fried Faces Legal Trouble Amid Accusations of Witness Tampering appeared first on Coinpedia Fintech News

In an astonishing twist, federal prosecutors are seeking to jail FTX’s founder, Sam Bankman-Fried, ahead of his October fraud trial. These fresh allegations come hot on the heels of prosecutors dropping claims of violating campaign finance regulations against the crypto maven.

A Turn for the Worse: Prosecutors Allege Intimidation Tactics

Prosecutors allege that Bankman-Fried is resorting to intimidation tactics in a bid to influence witness testimonies. The controversy arose after Bankman-Fried shared personal Google documents belonging to his ex-partner, Caroline Ellison, with a New York Times reporter, according to an article published on July 20th. Prosecutors argue that this action amounts to witness tampering.

FTX Founder, Sam Bankman-Fried, is facing potential imprisonment due to allegations of witness tampering. He appeared in Manhattan federal court for a bail hearing this afternoon.

U.S. Prosecutors are seeking to detain SBF based on accusations that he leaked his ex-girlfriend… pic.twitter.com/yxlmu9ikYs

— Chester Tam (@islantstudio) July 26, 2023

The Department of Justice (DOJ) further contends that the FTX founder’s move aims to harass Ellison and modify her testimony. The tactic could also deter other witnesses by hinting at the potential exposure of their private affairs.

In Defense of SBF

However, Bankman-Fried’s lawyer, Mark Cohen, counters that his client was merely exercising his right to defend himself publicly. He refutes the DOJ’s assertion that his client’s activities overstepped the line of fair comments into a calculated attempt to influence witnesses and undermine a fair trial.

Bankman-Fried: From Trading Floor to House Arrest

Following his extradition from the Bahamas in December 2022, Bankman-Fried has been largely confined to house arrest at his parents’ home in Palo Alto, California, secured by a $250 million bond.

The charges against Bankman-Fried are no small matter. Authorities have pegged them as among the most significant financial crimes in U.S. history. As reported by CNN, Bankman-Fried allegedly masterminded a vast conspiracy, diverting deposits from his crypto exchange, FTX, to fund risky bets at his hedge fund, make payments to American politicians, and support a luxury lifestyle for himself and his employees in the Bahamas.