Federal Prosecutor In US: Sam Bankman-Fried Should Have Been Thrown Into Prison Earlier

Sam Bankman-Fried. (Photo; Doc. Bitcoin Sistemi)

JAKARTA - The legal case involving the former FTX boss, Sam Bankman-Fried (SBF), is increasingly complicated with allegations of intimidation of witnesses and violations of the parole agreement.

SBF is suspected of being involved in the waste of investor and customer funds through illegal practices, including political sponsors, corrupt deals, and high-end marketing. As a result, the US government has secured key witnesses and has requested that SBF be imprisoned early for behavior that crosses the line.

Investigations into the collapse of FTX and Alameda Research further reveal the corrupt practices involved in the crypto environment. Former FTX top executive, including Caroline Ellison, has pleaded guilty and agreed to testify against SBF in the upcoming trial.

Currently, SBF is under house arrest with a guarantee of 250 million US dollars (Rp3.7 trillion), but there are allegations that he intimidated witnesses via text messages and gave Ellison's personal writings to journalists. Federal prosecutors asked SBF imprisonment earlier to facilitate further investigations into the collapse of FTX.

Following the recent disclosure of SBF witness intimidation, the Federal Prosecutor in the United States asked Judge Kaplan to order SBF imprisonment earlier before a court hearing scheduled for October 2.

In particular, Federal Prosecutor Danielle Sassoon told Judge Kaplan in Wednesday's hearing that the SBF had crossed the line and violated the parole agreement after she communicated with reporters.

"This latest incident is an escalation of the ongoing campaign with the press that has now crossed the line," Sassoon said. "There is not a single release requirement that can ensure public safety."

On the other hand, US lawmakers have taken action to protect investors from potentially harmful crypto projects. Coinbase CEO Brian Armstrong urged Americans to support legislation that would create regulatory clarity for crypto and protect investors, innovation and national security.

The SBF case shows the importance of transparency and clear regulations in the crypto industry to protect stakeholders and prevent harmful practices. The stronger efforts to overcome this problem, the more guaranteed sustainable growth and adoption of crypto technology in the future.