The US Justice Department is seeking to jail Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, alleging that he has tried to tamper with witnesses in his criminal case.
Bankman-Fried is facing charges of wire fraud, securities fraud, and money laundering. The DOJ alleges that he misappropriated billions of dollars from FTX customers and lenders.
At a hearing on Wednesday, Assistant US Attorney Danielle Sassoon said that Bankman-Fried had shared documents with the New York Times in an attempt to discredit former Alameda Research CEO, Caroline Ellison. Ellison is a potential witness in the case against Bankman-Fried.
Sassoon said that Bankman-Fried’s actions showed that he was a flight risk and a danger to the community. She asked the court to remand him into custody until his trial.
Bankman-Fried’s lawyers argued that he should be released on bail. They said that he had no history of violence or flight and that he was not a danger to the community.
The judge, Lewis Kaplan, said that he would rule on the matter later this week.
The DOJ’s case against Bankman-Fried is still in its early stages. It is possible that he will be acquitted of the charges against him. However, the fact that the DOJ is seeking to jail him is a sign that they believe they have a strong case.
The case against Bankman-Fried is also a sign of the growing scrutiny that the cryptocurrency industry is facing from regulators. In recent months, there have been a number of high-profile arrests and prosecutions of cryptocurrency figures. This suggests that regulators are taking a more aggressive approach to regulating the industry.
The outcome of the case against Bankman-Fried will be closely watched by the cryptocurrency industry. It will have a major impact on the future of the industry and the way that it is regulated.
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