Former head of FTX crypto exchange Bankman-Fried placed under arrest in the US
Earlier, he was released on $250 million bail, but the court changed its decision
A U.S. court has remanded the founder of the bankrupt cryptocurrency exchange FTX, Sam Bankman-Fried, who is accused of embezzling investor funds.
Bankman-Fried was released from custody on $250 million bail in late December. However, at a hearing on August 11, District Judge Lewis Kaplan overturned this decision, The Associated Press reports.
The reason for this was the evidence of at least two cases when the businessman tried to "influence witnesses." This refers to his personal correspondence with his ex-girlfriend and former Alameda Research CEO Caroline Allison, who is now the main prosecution witness in the case.
In addition, Bankman-Fried used the Signal program to contact FTX employees, including General Counsel Ryan Miller.
The defense team insisted that the defendant should not be placed under arrest because he was trying to "protect his reputation."
The FTX crypto exchange went bankrupt in November last year. Two months before, it was valued at $32 billion, and by early December, its value had fallen to $1 billion.
The founder of FTX, Sam Bankman-Fried, is facing charges that he fraudulently raised $1.8 billion from investors and used the crypto exchange's funds for risky bets in his hedge fund Alameda Research and personal expenses.
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