FTX founder Sam Bankman-Fried is set to be incarcerated on Friday following a judge's ruling in favor of prosecutors' request to deny him bail due to alleged witness tampering, as reported by CNBC.
Bankman-Fried has been out on a $250 million bail package since his arrest in December, which required him to reside at his parents' residence in Palo Alto, California.
This court appearance marks the latest in a series of pre-trial hearings concerning Bankman-Fried's interactions with the media. The Justice Department has accused him of engaging in a "pattern of witness tampering and evading his bail conditions."
Judge Lewis Kaplan had previously cautioned Bankman-Fried about communicating with the press. However, The New York Times and the Reporters Committee for Freedom of the Press have objected to his detention, arguing that it infringes upon his right to free speech.
Bankman-Fried's defense attorneys also emphasized the importance of free speech in his ability to engage with journalists, asserting that he has not violated any terms of his bail agreement by speaking with the media.
In the motion to detain Bankman-Fried, the government revealed that he had sent over 100 emails and made more than 1,000 phone calls to members of the press. Additionally, he was accused of leaking private diary entries belonging to his ex-girlfriend, Caroline Ellison, to The New York Times.
This action was reportedly the tipping point that led the judge to order Bankman-Fried's incarceration. Ellison is expected to be a key witness for the prosecution during the trial.
The prosecution argued that Bankman-Fried had resorted to in-person manipulations after facing restrictions on internet and phone usage. As a result, his revised bail conditions will include limited internet access and a prohibition on smartphone use.
Bankman-Fried's impending imprisonment raises questions about the impact this development will have on his ongoing legal battle. With his bail revoked, the trial is likely to proceed with heightened scrutiny on the allegations of witness tampering and the potential consequences for the FTX founder.
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