The $250 million bail package granted to embattled FXT founder Sam Bankman-Fried has been revoked, and he was taken into custody after a federal judge found he violated the condition of his release.
According to Financial Times, the 31-year-old owner of FXT, a bankrupt cryptocurrency exchange and crypto hedge fund company, had violated the conditions twice by tampering with witnesses in the case and was taken into custody on Friday.
“There is no condition or combination of conditions of release that will assure that the defendant will not pose a danger to other persons or the safety of the community,” the Manhattan federal court judge, Lewis Kaplan, said in a written order.
The decision of the prosecutors to ask Judge Kaplan for Mr Bankman-Fried’s bail to be revoked was based on a story published by The New York Times on extracts from the private diaries of Caroline Ellison.
She is the former CEO of Alameda Research, founded by Mr Bankman-Fried and has pleaded guilty to criminal charges and is cooperating with prosecutors.
The prosecutors subsequently identified the businessman as the source of the materials.
Mr Bankman-Fried was on bail for securities fraud, wire fraud and conspiracy charges as he awaits trial scheduled to begin in October. A campaign finance charge was dropped last month.
