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- 1 The federal judge denied Sam Bankman-Fried’s temporary release on a few grounds.
- 2 According to the judge, he is a flight risk considering his young age and prison time.
- 3 Sam Bankman Fried’s team is doing final preparation and has been trying for his temporary release.
It seems that Sam Bankman-Fried isn’t getting relief from the court very soon. On September 28, Judge Lewis Kaplan denied a motion from SBF’s legal team requesting a temporary release. The team appealed to the US District Court for the Southern District of New York. It said that their client needs some time to prepare for his trial. However, the judge didn’t find any merit in the argument and turned it down.
Denial Of Final Pretrial Request And The Path Ahead
Since the arrest, SBF’s lawyers have filed for their client’s temporary release many times. The recent one was done on August 11 on the grounds of witness intimidation. The appellate court reviewed the matter twice but didn’t agree with the attorneys’ requests. Reportedly, Judge Kaplan considered SBF a flight risk. According to him, SBF’s age and potential prison time are likely to make him one.
Despite denying early release, the judge allowed SBF to arrive at the court early on certain days. This would allow him to discuss the case with his legal team. Notably, the final preparations for Bankman-Fried’s trial are at their peak. The entire crypto space is keen to know what’ll come out of this case. They’re also curious to know about the testimony of former Alameda Research CEO Caroline Ellison.
In the meantime, Judge Kaplan ceded to some small demands from SBF. He allowed some ‘housekeeping’ motions and let him wear a suit at trial. Furthermore, he’ll be able to use an air-gapped laptop in the courtroom for taking notes. In total, Bankman-Fried will face 12 charges in court. Seven are related to the misuse of customer funds and an additional five are there for other charges.
On October 3, the court proceedings will follow only the first of two. Also, it should be noted that SBF hasn’t pleaded to any of the charges.
Understanding the Repercussions of FTX Collapse
The FTX collapse is probably the most resounding scam in the crypto space. The exchange had a valuation of $32 Billion once. When it shattered, it brought down many other crypto firms. On the front, it was functioning like an ordinary crypto exchange. But inside, it indulged in some egregious acts, like misusing the investors’ money. And as they say, money always leaves its trail behind.
The exchange’s surreptitious activities soon became public and SBF was put behind bars. This incident certainly left an indelible mark on the crypto space. It forced industry leaders and regulators to think. Now one may blame it all on the ill intentions of Bankman-Fried. But it must not be forgotten that he got the scope of doing it in the first place. Therefore, governments around the world are bringing regulations into the domain.
Moreover, the companies investing their money in this space have become more cautious. They are now choosing exchanges with a pinch of salt. And lastly, they are now pushing for the advancement of technology. According to many, the induction of Web3 and other advanced technology can prevent such occurrences. Well, no one knows for sure, but it’ll certainly be interesting to see.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
