Crypto firm founder Bankman-Fried heads to jail as bail revoked

Sam Bankman-Fried, who was arrested connected fraud charges past twelvemonth aft the illness of his crytocurrency firm, indispensable await proceedings down bars, a US justice has ordered.

Judge Lewis Kaplan agreed with prosecutors that the determination was indispensable to forestall him from interfering with the proceedings process.

Prosecutors had accused him of trying to intimidate witnesses expected to attest against him.

He has denied the claims.

The proceeding connected Mr Bankman-Fried's bail came up of trial, which is scheduled for October.

The 31-year-old is accused of misusing wealth from investors and customers of this bankrupt cryptocurrency speech FTX to wage for property, governmental donations and plug losses astatine his hedge fund, Alameda Research.

The erstwhile billionaire denied the claims and was released to his parents' location successful Palo Alto, California connected a $250m (£197m) bond.

The tribunal had already moved to tighten restrictions faced by Mr Bankman-Fried earlier this year, citing his efforts to interaction radical progressive successful the lawsuit and his usage of a virtual backstage network.

The latest petition from prosecutors was sparked by a July nonfiction successful the New York Times, which quoted confessional writings by Caroline Ellison, Mr Bankman-Fried's sometime woman and the erstwhile main enforcement of the hedge money helium founded, Alameda Research.

In the article, Ms Ellison, who pleaded blameworthy to fraud past twelvemonth and is expected to attest against Mr Bankman-Fried, was quoted reflecting connected their break-up and however she felt "overwhelmed" astatine work.

Prosecutors said Mr Bankman-Fried had shared the documents to effort to marque his lawsuit successful the media that Ms Ellison was a "jilted lover" who had worked alone.

They besides argued that it would person a chilling effect connected different imaginable witnesses due to the fact that it could marque them fearfulness "personal humiliation and efforts to discredit their reputation" beyond what would beryllium permitted successful court.

His attorneys said helium had shared documents that were already known to the newsman and had a close to talk to the media. They besides said sending Mr Bankman-Fried to jailhouse would hinder proceedings preparations.