Former cryptocurrency billionaire Sam Bankman-Fried will remain in custody pending trial, as an appeals court in the United States upheld the decision to revoke his bail. Bankman-Fried is facing charges of fraud related to the collapse of his bankrupt FTX exchange in November 2022. The trial is set to begin on October 3.

The court's decision was based on findings by US District Judge Lewis Kaplan, who believed that Bankman-Fried had attempted to tamper with witnesses. One of the instances cited was the sharing of personal writings by Caroline Ellison, the former CEO of Bankman-Fried's Alameda Research hedge fund, with a New York Times reporter. Ellison, who has pleaded guilty to fraud, is expected to testify against Bankman-Fried. In her writings, she expressed feelings of unhappiness and being overwhelmed with her job, as well as hurt and rejection following the end of her relationship with Bankman-Fried.

Bankman-Fried's lawyer, Mark Cohen, argued that his client's right to free speech was being violated by his pre-trial detention. However, a three-judge panel of the 2nd US Circuit Court of Appeals in Manhattan questioned this claim. US Circuit Judge Denny Chin pointed out that there is no First Amendment right to discredit or influence a witness who may testify against the defendant.

The panel of judges did not provide a timeline for their ruling on Bankman-Fried's request for release from the Metropolitan Detention Center in Brooklyn. Bankman-Fried is facing seven charges of fraud and conspiracy related to the collapse of FTX. Prosecutors allege that he looted billions of dollars from FTX customer funds to cover losses at Alameda, purchase luxury real estate, and make political donations. Bankman-Fried has pleaded not guilty, but admitted to risk management failures.

The judges appeared more receptive to Bankman-Fried's argument that his pre-trial detention violated his rights under the Constitution's Sixth Amendment, which guarantees the right to aid in one's own defense. They questioned prosecutor Danielle Sassoon about the adequacy of accommodations made by Judge Kaplan and the detention center for Bankman-Fried to access the internet and review evidence. Sassoon defended the government's efforts, stating that they had taken extraordinary measures to assist Bankman-Fried in preparing for trial while in custody. She also noted that Bankman-Fried had unrestricted internet access for seven months while on bail at his parents' home in Palo Alto, California.

In response, US Circuit Judge William Nardini suggested that Bankman-Fried should have considered the possibility of losing internet access before sharing Ellison's writings. Judge Kaplan had previously stated that Bankman-Fried did not specify which pieces of evidence he was unable to access and had not requested a trial delay despite the judge's offer to consider one. The judges did not indicate when they would make a decision on Bankman-Fried's request for release.

Overall, the case against Sam Bankman-Fried continues to unfold, with the appeals court upholding his detention and the trial set to begin soon. The allegations of fraud and tampering with witnesses paint a complex picture of the former cryptocurrency billionaire's actions. The court's decision to revoke his bail highlights the seriousness of the charges against him.