Bankman-Fried, the founder of FTX, was considered the absolute shooting star of the crypto bubble. Until suddenly billions of US dollars disappeared from clients as the financial juggernaut is said to have used it to cover the losses of his hedge fund “Alameda Research”. He will be tried on October 2 for aggravated fraud.
Until then, Bankman-Fried should actually be allowed to serve time in electronically monitored house arrest. He was released from custody on $250 million bail.
But that special treatment has now been revoked by a Manhattan judge. It said, “they have crossed a limit” and thus violated the terms. Bankman-Fried is said to have leaked private messages from his former partner, Caroline Ellison, to the New York Times. Which is especially relevant because Ellison is also an accused in the process, but she is cooperating with the judiciary and was due to testify against her former partner in October.
Bankman-Fried was arrested in the Bahamas and had recently been staying at her parents’ home in Palo Alto, California. He has declared himself innocent in the court.
