Sam Bankman-Fried’s request for immediate release from a Brooklyn jail to better prepare for his upcoming criminal trial, set to commence in less than a month, regarding the collapse of his FTX cryptocurrency exchange, was rejected.
While the 2nd US Circuit Court of Appeals in Manhattan denied Bankman-Fried’s plea, it did announce its intention to refer the matter to the next available three-judge panel for further consideration.
A spokesperson for Bankman-Fried declined to provide a comment on the development.
US District Judge Lewis Kaplan had revoked Bankman-Fried’s $250 million bail on August 11, alleging that the former billionaire had likely tampered with witnesses on at least two occasions.
Bankman-Fried swiftly appealed this decision, contending that he would be unable to adequately prepare for his scheduled trial on October 3rd while incarcerated.
Embezzling billions
Prosecutors have accused Bankman-Fried of embezzling billions from FTX customer funds to cover losses at Alameda Research, his hedge fund.
Bankman-Fried’s incarceration followed his sharing of personal writings by Caroline Ellison, Alameda’s former chief executive and his former romantic partner, with a New York Times reporter. He has pleaded not guilty to fraud and conspiracy charges, arguing that he shared Ellison’s writings to protect his reputation, rather than to intimidate her.
In court documents filed on Tuesday, Bankman-Fried’s legal team asserted that the arrangement allowing him several hours a day to review evidence on a laptop at the Metropolitan Detention Center in Brooklyn had proven inadequate. They cited an instance where he lost over four hours due to a prisoner count and additional time over the weekend.
The US Attorney’s office in Manhattan confirmed that the jail had authorized Bankman-Fried’s acquisition of a second laptop.
