FTX founder Sam Bankman-Fried's request for release from prison while appealing his conviction has been denied by the 2nd U.S. Circuit Court of Appeals, according to a decision made on November 21. The court cited Bankman-Fried's previous attempts to tamper with witnesses while on pretrial release as the primary basis for rejecting his request.
The court's decision was centered on the accusation that Bankman-Fried leaked Caroline Ellison's diary to The New York Times in July, leading a New York district court to revoke his bail. Bankman-Fried contended that his actions were within the bounds of free speech protected by the First Amendment. However, the appeals court sided with the New York district court's ruling, stating that witness tampering doesn't fall under constitutional protection.
Bankman-Fried's legal team also argued that the district court overlooked alternative options to detention, but this assertion was dismissed by the appeals court. It noted that the district court had thoroughly weighed various factors, including Bankman-Fried's previous time on pretrial release, before arriving at its decision.
On November 2, Bankman-Fried was found guilty of seven charges related to fraud and money laundering. Consequently, the former FTX CEO is set to remain in custody until his sentencing scheduled for March 28 next year.
