FTX’s Sam Bankman-Fried Denied Temporary Release by Judge
In a recent development, United States District Judge Lewis A. Kaplan rejected FTX founder Sam Bankman-Fried’s plea for temporary release during his trial. Bankman-Fried is facing charges related to the alleged defrauding of cryptocurrency investors from FTX’s collapse in November 2022.
During a hearing, Judge Kaplan denied the request made by Bankman-Fried’s legal team to grant their client temporary bail in order to better prepare for his defense. Despite pleading not guilty to seven counts of fraud and conspiracy, the 31-year-old former billionaire was deemed a flight risk by Judge Kaplan, who expressed concerns about the severity of the charges.
Potential Maximum Sentence of 110 Years
If convicted, Bankman-Fried potentially faces a maximum sentence of 110 years in prison. However, the actual sentence will be determined by Judge Kaplan, taking various factors into consideration. Prosecutors opposed Bankman-Fried’s request for temporary release, highlighting that he had already been free on bail for seven and a half months at his residence in Palo Alto, California, which provided ample time for trial preparation.
Judge Kaplan said, “Your client, in the event of conviction, could be looking at a very long sentence. If things look bleak, maybe the time would come when he would seek to flee.”
Defense Argues for Temporary Release
Bankman-Fried’s defense attorney Mark Cohen argued that there was no compelling reason to deny his client temporary release and stated that Bankman-Fried had never shown any indication of being a flight risk. However, Judge Kaplan maintained his decision to keep him in custody.
The decision to deny temporary release was made on August 11 after allegations arose that Bankman-Fried had tampered with witnesses on two occasions, including sharing private writings of former Alameda chief executive officer Caroline Ellison with a New York Times reporter.
Hot Take: Bankman-Fried Denied Temporary Release Amidst Flight Risk Concerns
In a blow to FTX founder Sam Bankman-Fried, United States District Judge Lewis A. Kaplan denied his plea for temporary release during his trial. The judge deemed him a flight risk due to the severity of the charges he is facing related to the alleged defrauding of cryptocurrency investors from FTX’s collapse. Despite arguments from Bankman-Fried’s defense attorney, the judge remained firm in his decision.
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