Crypto News: Judge Kaplan Denies SBF’s Repeated Release Requests

Sam Bankman-Fried faced a setback on Tuesday as his attempt to secure temporary release from Brooklyn’s Metropolitan Detention Center was rejected. The purpose was to better prepare for his upcoming trial scheduled for October 3. Bankman-Fried’s legal team contended that the conditions within the facility were making it exceedingly challenging for him to review the prosecution’s evidence thoroughly.

However, U.S. District Judge Lewis Kaplan countered this claim, stating that Bankman-Fried had not specified which particular pieces of evidence he couldn’t access.

Notably, despite the alleged obstacles, Bankman-Fried has not sought to delay the trial. Judge Kaplan has left a slight opening for a “more detailed application for release,” which could potentially be a lifeline for the defendant.

What Did SBF Do Wrong – Some Context

Bankman-Fried was initially taken into custody on August 11 after Kaplan found probable cause that he had tampered with witnesses, including sharing personal writings of his former romantic partner and colleague, Caroline Ellison, with a New York Times reporter. Ellison, once the CEO of Alameda Research, has pleaded guilty to fraud charges and is expected to testify against Bankman-Fried.

The DOJ has laid down a string of allegations, including the theft of billions of dollars in FTX customer funds to cover Alameda’s losses and fuel Bankman-Fried’s real-estate ambitions and political endeavors.

In a somewhat puzzling move, the DOJ prosecutors dropped Count 8, Campaign Finance charges, at the request of the Bahamas on August 14. The nature of this request and the Bahamas’ involvement remain a mystery.

SBF Has Continued to Fight

Highlighting the challenges he faces, Bankman-Fried’s legal team emphasized in a communication dated August 25 that their client could not adequately prepare his defense with only “two days a week in the holding cell with a laptop.”

On September 19, a three-judge panel from the 2nd US Circuit Court of Appeals is slated to hear arguments regarding Bankman-Fried’s appeal against his detention order.

As the trial date of October 3 looms closer, the fate of SBF and FTX remains uncertain and hinges on the outcome of these legal proceedings.