- DOJ seeks SBF’s bail cancellation; accused of witness tampering and leaking diary to NYT.
- SBF communicated with FTX US counsel via Signal, raising concerns about obstruction.
- Stark highlights Judge Kaplan’s tough decision on potential bail modification or revocation.
Based on a court filing on July 28, the United States Department of Justice (DOJ) is pursuing the cancellation of Sam Bankman-Fried’s (SBF) bail. The accusation against him includes alleged actions of witness tampering and the disclosure of Caroline Ellison’s diary to The New York Times.
The DOJ points out that SBF was initially released on a bond on December 22, 2022, but later sought multiple changes to the bail conditions. As stated in the filing, on January 15, 2023, the defendant allegedly communicated with the current general counsel of FTX US through email and the encrypted messaging application, Signal.
During the communication, SBF conveyed his interest in reestablishing a connection and exploring the potential of building a positive relationship. He inquired about the possibility of mutually supporting each other as resources and exchanging input on various matters.
Furthermore, there are allegations that SBF utilized Signal for obstructive purposes, as the app’s auto-deletion feature made it difficult for investigators to access the communication. The court raised concerns about the possibility of witness tampering due to the defendant’s actions and behavior.
According to John Reed Stark, the former U.S. Securities and Exchange Commission’s Office of Internet Enforcement chief, Judge Lewis Kaplan has various options in response to SBF’s actions. Judge Kaplan could interpret SBF’s behavior as an attempt to improperly influence witnesses and then decide to either impose additional modifications to his bail terms or completely revoke his bail.
Stark argued that Judge Kaplan faces a difficult decision in this case as if SBF is allowed to remain free, the judge may need to reiterate his previous warnings.
This written submission follows a hearing on July 26 in a Manhattan court, during which U.S. Attorney Danielle Sassoon requested the revocation of SBF’s bail. The request was based on allegations that SBF used his freedom to intimidate Caroline Ellison, his former romantic partner and colleague. Sassoon informed the judge that SBF attempted to “intimidate” Ellison and made approximately 100 calls to a reporter from The New York Times.
Furthermore, in a July 20 complaint, the DOJ leveled accusations against SBF for leaking Ellison’s diary. They accused him of trying to publicly discredit a government witness by sharing her personal writings with a reporter.
