Prior to his October trial, US federal prosecutors reportedly intend to imprison former FTX CEO Sam Bankman-Fried. Indeed, according to Reuters, the prosecution requested that the former executive be sentenced before the trial related the now-defunct bitcoin exchange.
Prosecutor Danielle Sasson allegedly stated, “No set of release conditions can ensure the safety of the community,” at a hearing in federal court in Manhattan. The request has thus been made at a time when Bankman-Fried is being held on a number of charges related to the collapse of the exchange last year.
The US wants to jail Bankman-Fried
FTX’s tragedy has undoubtedly generated one of the biggest scandals in the history of the sector. Furthermore, the company’s discovered fraud was one of the biggest financial crimes in US history. The co-founder and CEO of the company may or may not survive an October trial.
US prosecutors are now advocating for Sam Bankman-Fried to be imprisoned in advance of that trial. Federal prosecutors specifically asked the judge to imprison the former CEO. requesting that the former exchange executive be held in custody up until the proceedings in October.
The focus of those legal proceedings will be on Bankman-Fried’s involvement in the collapse of FTX. In contrast, Bankman-Fried is being prosecuted on more than 13 criminal counts for his role in the company’s demise. He currently has not admitted guilt to any of them.
Federal prosecutors, however, are urging his arrest prior to those procedures. Following Bankman-Freid’s disclosure of Caroline Ellison, CEO of Alameda Research’s private writings, the request has been made. Ellison is anticipated to testify against the former CEO, and the writings were provided to the New York Times. Some have referred to the documents’ leak as document tampering, and his activities have led to calls for jail time.
