Bankman Fried, 31, has pleaded not guilty to stealing billions of dollars in client funds from FTX, which he founded, to pay the losses of his hedge fund, Alameda Research. Today’s hearing will determine whether Bankman Fried can remain free.
Since her December 2022 arrest, Bankman-Fried has been living mostly at her parents’ home in Palo Alto, California, on $250 million bail, but Manhattan prosecutors now want her jailed for witness tampering.
Prosecutors first made their surprise proposal to jail the former billionaire at a July 26 hearing, saying he “crossed the line” by sharing the personal writings of his ex-lover Carolyn Ellison with a New York Times reporter.
Ellison was the CEO of Alameda and is expected to testify against Bankman-Fried after pleading guilty to fraud and agreeing to cooperate with prosecutors. Two other former members of Bankman-Fried’s inner circle also pleaded guilty.
Bankman-Fried’s attorneys say prosecutors misinterpreted her intentions when she shared Ellison’s writings, arguing that she wanted to protect her reputation and had the right to speak to the press.
Cover photo credit: felix mizioznikov via Getty Images
