Friday, August 11, 2023

THE PRICE TO PAY

 

The price you pay...... for the games you play .........

i hope he gets blood farts .......every single day...........payback is a bitch.........

Disgraced FTX founder Sam Bankman-Fried gets the shock of his life as judge REVOKES his $250 million bail and orders him to jail after he 'leaked star witness's love letters'

  • Sam Bankman-Fried has his $250 million bail revoked after he 'leaked star witness's love letters' - judge says it is evidence of witness tampering
  • Bankman-Fried is accused leaking messages from his ex-girlfriend Caroline Ellison, where she detailed struggling as CEO of hedge fund Alameda Research
  • He is facing over 100 years behind bars for charges related to the FTX collapse 

Disgraced FTX founder Sam Bankman-Fried has had his $250 million bail revoked after he leaked ex-girlfriend Caroline Ellison's love letters to the New York Times. 

Bankman-Fried was pictured looking deflated and dejected in a court sketch drawn as he was hauled away afterwards, with his ultimate destination one of America's most notorious jails.  

US District Court Judge Lewis Kaplan said in court on Friday that there is 'probable cause to believe that the defendant has attempted to tamper with witnesses at least twice'.

Kaplan rejected a defense request to delay Bankman-Fried's detention pending his appeal of the bail revocation.

Bankman-Fried's lawyers earlier insisted he shouldn't be jailed and argued that he was trying to protect his reputation. 

The decision to jail Bankman-Fried could complicate his efforts to prepare for trial, where the 31-year-old former billionaire faces charges of having stolen billions of dollars in FTX customer funds to plug losses at his Alameda Research hedge fund.

Assistant U.S. Attorney Danielle Sassoon told the court that the FBI 'insisted' that Bankman-Fried be held in the Putnam County Correctional Facility ahead of the trial, before he is transferred to the Metropolitan Detention Center in Brooklyn for the duration of the trial. However, it is unclear where he will now be held.

He has been under house arrest at his parents' home in Palo Alto, California, since his December extradition from the Bahamas.  His $250 million bail package, which was the most expensive in US history, severely restricts his internet and phone usage.

Disgraced FTX founder Sam Bankman-Fried has his $250 million bail revoked after he 'leaked star witness's love letters' and judge says it's evidence of witness tampering

Disgraced FTX founder Sam Bankman-Fried has his $250 million bail revoked after he 'leaked star witness's love letters' and judge says it's evidence of witness tampering

Bankman-Fried hangs his head in this court sketch after he is handcuffed

Bankman-Fried hangs his head in this court sketch after he is handcuffed

Sam Bankman-Fried is escorted by court officers to holding cells in this courtroom sketch

Sam Bankman-Fried is escorted by court officers to holding cells in this courtroom sketch

Sam Bankman-Fried arrives at NYC court to hear if he will be jailed
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As Kaplan remanded Bankman-Fried to custody, the disgraced FTX founder took off his jacket and tie, knelt down and took off his shoelaces.

As he did, US Marshals moved in to handcuff Bankman-Fried - who was led out from the courtroom after his bail was revoked.

The decision could complicate Bankman-Fried's efforts to prepare for trial. The 31-year-old has pleaded not guilty.

Bankman-Fried's family swiftly exited Manhattan Federal court - Barbara leading the charge in a pair of dark sunglasses - his father followed behind.

During the bond hearing Assistant U.S. Attorney Danielle Sassoon argued that Bankman-Fried's sharing of Ellison's information was part of an 'ongoing media strategy.'

'Existing conditions are not adequate, after extensive negotiations. The order is not sufficient. It is difficult to enforce,' she said.

'The defendant requested access to Google Drive, he said for discovery. Then he used it to give Ms. Ellison's documents to the New York Times. 

'We asked the defense to give us non-PDF versions with meta data, they have not been provided.'

Kaplan said that Ellison's documents are 'in part personal and intimate.'

'They are personally oriented, not business oriented,' he said to the court.

'There's something that someone who has been in a relationship would be unlikely to share with anyone except to hurt and frighten the subject.'

Kaplan also noted Bankman-Fried 'tried to go up to the line' such as his use of a VPN to watch a football game 'over an account he wasn't authorized.'

'He subscribed from the Bahamas and used a VPN as if he were in the Bahamas when he was in Palo Alto and could have watched it on public TV,' he said.

'It shows the mindset. All things considered I am going to revoke bail.'

He is facing over 100 years behind bars for charges related to the FTX collapse

He is facing over 100 years behind bars for charges related to the FTX collapse

Bankman-Fried's family swiftly exited Manhattan Federal court - Barbara leading the charge in a pair of dark sunglasses - his father Joseph followed behind

Bankman-Fried's family swiftly exited Manhattan Federal court - Barbara leading the charge in a pair of dark sunglasses - his father Joseph followed behind

Barbara appeared stony faced as she held her head low while holding her phone

Barbara appeared stony faced as she held her head low while holding her phone

Sam Bankman-Fried and parents seen at court as judge revokes bail
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It remains unclear where Bankman-Fried has been remanded to custody however prosecutors said they have been discussing with Putnam County Correctional Facility, which unlike MDC-Brooklyn could provide some Internet.

Kaplan did however say he is 'focused on the possibility that [Bankman-Fried] will be detained at the MDC - not on anyone's list of five star facilities.'

MDC is notorious for housing Ghislaine Maxwell, 6ixnine, R Kelly and Martin Shkreli.

Two weeks ago, prosecutors surprised Bankman-Fried's attorneys by demanding his incarceration, saying he violated his bail order by giving The New York Times the private writings of Caroline Ellison, his former girlfriend and the ex-CEO of Alameda Research, a cryptocurrency trading hedge fund that was one of his businesses.

Prosecutors maintained he was trying to sully her reputation and influence prospective jurors who might be summoned for his October trial.

Ellison pleaded guilty in December to criminal charges carrying a potential penalty of 110 years in prison. She has agreed to testify against Bankman-Fried as part of a deal that could lead to a more lenient sentence.

Bankman-Fried's lawyers argued he probably failed in a quest to defend his reputation because the article cast Ellison in a sympathetic light. They also said prosecutors exaggerated the role Bankman-Fried had in the article.

They said prosecutors were trying to get their client locked up by offering evidence consisting of 'innuendo, speculation, and scant facts.'

Since prosecutors made their detention request, U.S. District Judge Lewis A. Kaplan has imposed a gag order barring public comments by people participating in the trial, including Bankman-Fried.

David McCraw, a lawyer for the Times, has written to the judge, noting the First Amendment implications of any blanket gag order, as well as public interest in Ellison and her cryptocurrency trading firm.

Ellison confessed to a central role in a scheme defrauding investors of billions of dollars that went undetected, McGraw said.

Bankman-Fried's $250 million bail package, which was the most expensive in US history, severely restricts his internet and phone usage

Bankman-Fried's $250 million bail package, which was the most expensive in US history, severely restricts his internet and phone usage

He wore a navy suit during his appearance in court Aug 11
He paired the outfit with brown shoes

He wore a navy suit, with brown shoes on Aug 11 and kept his head down as he shuffled into court 

The 31-year-old has been under house arrest at his parents' home in Palo Alto, California , since his December extradition from the Bahamas

The 31-year-old has been under house arrest at his parents' home in Palo Alto, California , since his December extradition from the Bahamas

'It is not surprising that the public wants to know more about who she is and what she did and that news organizations would seek to provide to the public timely, pertinent, and fairly reported information about her, as The Times did in its story,' McGraw said.

Bankman-Fried is facing a slew of criminal charges related to the collapse of his cryptocurrency exchange FTX in November. He allegedly misused billions of dollars from investors on lavish gifts and political donations, before losing shareholders their fortunes 

Since he was controversially released in December, Bankman-Fried has been hauled before Manhattan court several times for angering prosecutors, including violating his ban on using the internet to stream the Superbowl in February

After a back-and-forth over his use of the internet, a deal was struck where Bankman-Fried was given a flip phone with no internet and a laptop with limited functions. 

However, Kaplan rejected the deal due to fears he would 'find a way around it', and he has expressed frustration with Bankman-Fried's complex bail process. 

The New York Times article at the heart of Wednesday's hearing was titled 'Inside the Private Writings of Caroline Ellison, Star Witness in the FTX Case', and featured intimate information about her time as CEO of Alameda Research.

She detailed being 'unhappy and overwhelmed' by the role, and wrote in one leaked message from February 2022: 'At the end of the day I can't wait to go home and turn off my phone and have a drink and get away from it all.' 

Prosecutors asked a judge to revoke Bankman-Fried's bail, claiming he tried to harass a key witness in his fraud case - judge Kaplan said that there is probable cause he did this with two witnesses

Prosecutors asked a judge to revoke Bankman-Fried's bail, claiming he tried to harass a key witness in his fraud case - judge Kaplan said that there is probable cause he did this with two witnesses

Bankman-Fried is facing a slew of criminal charges related to the collapse of his cryptocurrency exchange FTX in November

Bankman-Fried is facing a slew of criminal charges related to the collapse of his cryptocurrency exchange FTX in November

His lawyers insisted he shouldn't be jailed for trying to protect his reputation against a barrage of unfavorable news stories

His lawyers insisted he shouldn't be jailed for trying to protect his reputation against a barrage of unfavorable news stories

Ellison's battle to stay afloat at the company before it dramatically collapsed is fascinatingly detailed in the messages, including one addressed to Bankman-Fried where she said she wanted to leave because Alameda 'felt too associated with you in a way that was painful.'

She also wrote that when Bankman-Fried was around, she had 'an instinct to shrink and become smaller and quieter and defer to others,' adding that 'it doesn't really feel like there's an end in sight.'

Another shared document addressed to Bankman-Fried in April 2022 revealed  Ellison's breakup from Bankman-Fried had 'significantly decreased my excitement about Alameda' - and that she had cut off communication with her ex-beau.

Bankman-Fried is accused leaking messages from his ex-girlfriend Caroline Ellison (pictured), where she detailed struggling as CEO of hedge fund Alameda Research

Bankman-Fried is accused leaking messages from his ex-girlfriend Caroline Ellison (pictured), where she detailed struggling as CEO of hedge fund Alameda Research

'I felt pretty hurt/rejected,' she wrote in the document seen by the Times. 'Not giving you the contact you wanted felt like the only way I could regain a sense of power.'

Ellison was running the hedge fund despite being in her mid 20s, and she said in the document that she didn't see herself as well suited for running a major company and struggled with making decisions. 

The Times claims the intimate information was available due to Ellison's habit of journaling her thoughts in a private diary and on Google documents, which were then circulated among numerous lawyers after FTX's collapse. Bankman-Fried's lawyers also defended the alleged leak and said he would be within his rights to share information with a journalist. 

Prosecutors asked Kaplan to revoke Bankman-Fried's bail as they claim he was the source of the information, alleging he did so to 'interfere with a fair trial by an impartial jury.'

In previous court sessions, Kaplan indicated that he was open to revoking Bankman-Fried's bail and having him await trial from behind bars. 

US Attorney Danielle Sassoon also alleged on Wednesday that Bankman-Fried had been a source for multiple stories surfacing in the media, which branded an 'ongoing campaign with the press that has now crossed a line.' 

However, the former crypto boss' legal team fired back over claims he was trying to tamper with a witness, with attorney Mark Cohen slamming the prosecution for 'pretending it never speaks to the media about this case.'

Disgraced FTX co-founder SBF arrives at Manhattan court
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The 31-year-old has been hauled before Manhattan court several times for angering prosecutors

The 31-year-old has been hauled before Manhattan court several times for angering prosecutors

Prosecutors alleged that Bankman-Fried had been a source for multiple stories surfacing in the media, which branded an 'ongoing campaign with the press that has now crossed a line'

Prosecutors alleged that Bankman-Fried had been a source for multiple stories surfacing in the media, which branded an 'ongoing campaign with the press that has now crossed a line'

Reports indicate that audible gasps rung out across the courtroom when the government requested he be jailed, and Cohen claimed he wasn't given prior notice over the move. 

'We learned for the first time one minute before court that the government is seeking detention,' he said, slamming the request as 'not a proper process.' 

The defense also argued that their client's frequent public statements about his case are his constitutional right. 

His attorneys cited a 'toxic' approach from the press that has been 'almost uniformly' negative, which they feel means he has the 'right to counter that public narrative by making fair comment in the media.' 

The 31-year-old has made numerous public remarks and blog posts in recent months about his time waiting federal charges, and Sassoon said prosecutors feel they 'placed too much trust in the defendant' when they set his bail terms.

She said the prosecution now believes it is 'not possible to design a set of adequate release conditions' before he goes on trial, and the only way to protect the case would be to lock him up. 

Bankman-Fried's defense team also said they will accept the gag order, but asked it to be equally applied to others involved in the case.

Leaked messages written by Caroline Ellison offered a glimpse at her life as CEO of Alameda Research, where she noted being 'overwhelmed' by the role

Leaked messages written by Caroline Ellison offered a glimpse at her life as CEO of Alameda Research, where she noted being 'overwhelmed' by the role

Cryptocurrency exchange FTX collapsed after Bankman-Fried allegedly misused billions in shareholder funds on lavish gifts and political donations

Cryptocurrency exchange FTX collapsed after Bankman-Fried allegedly misused billions in shareholder funds on lavish gifts and political donations

They noted that the restrictions on publicly speaking about the trial should count for 'the government and all potential witnesses in this case', likely meaning Ellison.

In a hearing in February, Kaplan placed restrictions on Bankman-Fried's ability to message ex-colleagues at FTX after he allegedly coercing his former company's legal counsel.

The move saw him breach the conditions of the largest bail in US history when he sent a text to his former legal team saying: 'I know it's been a while since we've talked. And I know things have ended up on the wrong foot.

'I would really love to reconnect and see if there's a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other. I'd love to get on a phone call sometime soon and chat.'






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