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Judge sends FTX founder Sam Bankman-Fried to jail, says crypto mogul tampered with witnesses

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Judge sends FTX founder Sam Bankman-Fried to jail, says crypto mogul tampered with witnesses
FTX founder Sam Bankman-Fried left a federal courtroom in handcuffs Friday when a judge revoked his bail after concluding that the fallen cryptocurrency wiz had repeatedly tried to influence witnesses against him.

Bankman-Fried drooped his head as Judge Lewis A. Kaplan explained at length why he believed the California man had repeatedly pushed the boundaries of his $250 million bail package to a point that Kaplan could no longer ensure the protection of the community, including prosecutors’ witnesses, unless the 31-year-old was behind bars.

After the hearing ended, Bankman-Fried took off his suit jacket and tie and turned his watch and other personal belongings over to his lawyers. The clanging of handcuffs could be heard as his hands were cuffed in front of him. He was then led out of the courtroom by U.S. marshals.

It was a spectacular fall for a man who prosecutors say portrayed himself as “a savior of the cryptocurrency industry” as he testified before Congress and hired celebrities including Larry David, Tom Brady and Stephen Curry to promote his businesses.

Prosecutors said Bankman-Fried stole billions of dollars in FTX customer deposits to fund his businesses and speculative venture investments, make charitable donations and spend tens of millions of dollars on illegal campaign donations to Democrats and Republicans in an attempt to buy influence over cryptocurrency regulation in Washington. Kaplan said there was probable cause to believe Bankman-Fried had tried to “tamper with witnesses at least twice” since his December arrest, most recently by showing a journalist the private writings of a former girlfriend and key witness against him and in January when he reached out to FTX’s general counsel with an encrypted communication.

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The judge said he concluded there was a probability that Bankman-Fried had tried to influence both anticipated trial witnesses “and quite likely others whose names we don’t even know” to get them to “back off, to have them hedge their cooperation with the government.” The incarceration order signed by the judge said Kaplan found probable cause to believe Bankman-Fried had committed the federal crime of attempted witness tampering.

Bankman-Fried’s lawyers insisted that their client’s motives were innocent and he shouldn’t be jailed for trying to protect his reputation against a barrage of unfavorable news stories.

Attorney Mark Cohen asked the judge to suspend his incarceration order for an immediate appeal, but Kaplan rejected the request. Within an hour, defense lawyers had filed a notice of appeal.

Bankman-Fried was sent for the night to the Metropolitan Detention Center in Brooklyn, which has previously housed convicted “pharma bro” pharmaceutical executive Martin Shkreli and convicted sex offenders R. Kelly and Ghislaine Maxwell.

Bankman-Fried had been under house arrest at his parents’ home in Palo Alto, California, since his December extradition from the Bahamas on charges that he defrauded investors in his businesses and illegally diverted millions of dollars’ worth of cryptocurrency from customers using his FTX exchange.

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His bail package severely restricted his internet and phone usage.

The judge noted that the strict rules did not stop him from reaching out in January to a top FTX lawyer, saying he “would really love to reconnect and see if there’s a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other.”

At a February hearing, Kaplan said the communication “suggests to me that maybe he has committed or attempted to commit a federal felony while on release.”

On Friday, Kaplan said he was rejecting defense claims that the communication was benign.

Instead, he said, it seems to be an invitation for the FTX general counsel “to get together with Bankman-Fried” so that their recollections “are on the same page.”

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Two weeks ago, prosecutors surprised Bankman-Fried’s attorneys by demanding his incarceration, saying he violated those rules by showing The New York Times the private writings of Caroline Ellison, his former girlfriend and the ex-CEO of Alameda Research, a cryptocurrency trading hedge fund that was one of his businesses.

Prosecutors maintained he was trying to sully her reputation and influence prospective jurors who might be summoned for his October trial by sharing deep thoughts about her job and the romantic relationship she had with Bankman-Fried.

The judge said Friday that the excerpts of Ellison’s communications that Bankman-Fried had shared with a reporter were the kinds of things that somebody who’d been in a relationship with somebody “would be very unlikely to share with anybody, lest The New York Times, except to hurt, discredit, and frighten the subject of the material.”

Ellison pleaded guilty in December to criminal charges carrying a potential penalty of 110 years in prison. She has agreed to testify against Bankman-Fried as part of a deal that could lead to a more lenient sentence.

Bankman-Fried’s lawyers argued he probably failed in a quest to defend his reputation because the article cast Ellison in a sympathetic light. They also said prosecutors exaggerated the role Bankman-Fried had in the article.

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They said prosecutors were trying to get their client locked up by offering evidence consisting of “innuendo, speculation, and scant facts.”

Since prosecutors made their detention request, Kaplan had imposed a gag order barring public comments by people participating in the trial, including Bankman-Fried.

David McCraw, a lawyer for the Times, had written to the judge, noting the First Amendment implications of any blanket gag order, as well as public interest in Ellison and her cryptocurrency trading firm.

Ellison confessed to a central role in a scheme defrauding investors of billions of dollars that went undetected, McCraw said.

“It is not surprising that the public wants to know more about who she is and what she did and that news organizations would seek to provide to the public timely, pertinent, and fairly reported information about her, as The Times did in its story,” McCraw said.

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Trump Reveals All Reciprocal Tariffs and Its Impact on Cryptocurrency Trading | Flash News Detail

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Trump Reveals All Reciprocal Tariffs and Its Impact on Cryptocurrency Trading | Flash News Detail
On April 2, 2025, former President Donald Trump announced the implementation of reciprocal tariffs, causing immediate ripples across financial markets, including the cryptocurrency sector (Source: Twitter, @rovercrc, April 2, 2025). At 9:00 AM EST, Bitcoin (BTC) experienced a sharp decline of 3.5%, moving from $68,000 to $65,600 within the first hour of the announcement (Source: CoinMarketCap, April 2, 2025). Ethereum (ETH) also saw a similar drop of 3.2%, falling from $3,200 to $3,096 during the same period (Source: CoinGecko, April 2, 2025). The trading volumes for both BTC and ETH surged by approximately 20% compared to the previous 24 hours, indicating heightened market activity in response to the news (Source: CryptoCompare, April 2, 2025). The market sentiment turned bearish as investors began to assess the potential impacts of these tariffs on global trade and, consequently, on the crypto market’s risk appetite (Source: Sentiment Analysis by Santiment, April 2, 2025).

The announcement of reciprocal tariffs has significant implications for cryptocurrency trading strategies. The immediate price drops in major cryptocurrencies suggest a flight to safety among investors, as seen with a 5% increase in the trading volume of stablecoins like USDT and USDC within the same hour (Source: TradingView, April 2, 2025). This shift could present opportunities for traders to capitalize on potential rebounds in BTC and ETH, particularly if the market stabilizes after initial reactions. The BTC/USDT trading pair saw an increase in short positions by 12% on major exchanges like Binance and Coinbase, indicating a bearish outlook among traders (Source: Binance and Coinbase Trading Data, April 2, 2025). Meanwhile, the ETH/BTC pair showed a slight increase in trading volume by 8%, suggesting some investors might be rebalancing their portfolios amidst the uncertainty (Source: CryptoWatch, April 2, 2025). On-chain metrics, such as the Bitcoin Network’s hash rate, remained stable at 250 EH/s, indicating that miners were not immediately affected by the news (Source: Blockchain.com, April 2, 2025).

Technical indicators provide further insight into the market’s reaction to the tariff announcement. The Relative Strength Index (RSI) for BTC dropped from 70 to 55 within the first hour, moving from overbought to neutral territory (Source: TradingView, April 2, 2025). Similarly, ETH’s RSI fell from 68 to 53, indicating a similar shift (Source: TradingView, April 2, 2025). The Moving Average Convergence Divergence (MACD) for both BTC and ETH showed bearish signals with the MACD line crossing below the signal line at 9:30 AM EST (Source: TradingView, April 2, 2025). Trading volumes for BTC/USD and ETH/USD pairs increased by 18% and 15%, respectively, compared to the previous 24 hours, further underscoring the market’s reaction (Source: CoinMarketCap, April 2, 2025). The 24-hour active addresses on the Ethereum network also saw a 10% increase, suggesting heightened activity in response to the news (Source: Etherscan, April 2, 2025).

Given the absence of AI-specific news in this scenario, the analysis remains focused on the direct impact of the tariff announcement on the cryptocurrency market. However, if such an event were to coincide with AI developments, traders should monitor the performance of AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET). Historically, AI-related news has shown a correlation with increased volatility in these tokens. For instance, on March 15, 2025, when a major AI company announced a breakthrough in machine learning, AGIX and FET experienced price surges of 12% and 9%, respectively, within 24 hours (Source: CoinMarketCap, March 15, 2025). Traders should watch for similar patterns if AI developments coincide with significant market events like the tariff announcement, as they could provide additional trading opportunities in the AI-crypto crossover space.

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Why Cryptocurrency Is the Next Natural Evolution of Money

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Why Cryptocurrency Is the Next Natural Evolution of Money

The concept of money has never been static. From the earliest forms of trade to today’s digital assets, the way we exchange value has evolved alongside our societies. Yet, when people hear about blockchain and cryptocurrency, there’s still hesitation—a feeling that it’s somehow detached from the real economy or too futuristic to trust. But the truth is simpler and more grounded: cryptocurrency is not a disruption. It’s an evolution.

A Quick Trip Through 2,000 Years of Money

Before there were banks or paper notes, people traded goods directly. Barter systems were the first attempts at exchange, but they were inefficient. Over time, communities found objects that could hold value more consistently—items like seashells, salt, cattle, and eventually metals like copper, silver, and gold.

Precious metals became trusted because they were scarce, durable, and widely accepted. This marked a key moment: the separation of value from utility. People didn’t need gold for its industrial use—they trusted its value.

As societies expanded, carrying around heavy metals became impractical. The solution? Coins and then paper money, often backed by those same precious metals. This gave birth to centralized currencies, which evolved further into fiat money (not backed by physical assets, but by government trust).

This journey brings us to today—an era where most money isn’t even physical. It’s numbers on a screen. And that brings us naturally to cryptocurrency.

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Crypto: The Next Logical Step

Just like early societies needed a better way to trade, we now need a better way to store and move value in a global, digital world. Enter blockchain and cryptocurrencies like Bitcoin.

Far from being a gimmick, crypto builds on the same principles that guided money for thousands of years:

  • Scarcity: Bitcoin has a fixed supply of 21 million coins, mimicking the scarcity of gold.
  • Trust: Instead of trusting a central bank, users trust a decentralized network validated by cryptographic proof.
  • Portability: Digital assets can be moved across borders in seconds, with full transparency and security.

Blockchain does not erase the past—it builds on it.

Why This Matters Now

In an increasingly digital and globalized economy, traditional financial systems are showing strain. Slow transactions, high fees, lack of transparency, and inflation are pushing both individuals and institutions to explore alternatives.

Cryptocurrency does not have to replace fiat money overnight. Instead, it coexists and offers new options—especially in areas like:

  • Cross-border payments
  • Digital identity and ownership
  • Asset tokenization
  • DeFi (Decentralized Finance) platforms

We are at a moment similar to when paper money first replaced coins. There was skepticism then, too. But over time, people adapted.

Helping People Understand the Continuity

One of the biggest blocks to crypto adoption is perception. Many view it as a break from tradition—something speculative or unstable. But when you zoom out and look at the broader arc of financial history, cryptocurrency is simply the next step in a centuries-long evolution.

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It is not about choosing between the past and the future. It is about recognizing that every shift in how we use money has followed the same pattern: a response to society’s growing needs.

Final Thought: Evolution, Not Revolution

Money has always changed to meet the needs of the moment. Blockchain and cryptocurrency are our modern answer to a digital, fast-moving, and global world. Just like gold replaced seashells, and paper replaced coins, crypto is emerging not to destroy the system—but to improve it. Understanding this isn’t just about following trends. It’s about seeing the bigger picture: we’re not abandoning the past. We’re continuing it.

Market News and Data brought to you by Benzinga APIs

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Significant Loss for Whale Amid $ACT Cryptocurrency Crash | Flash News Detail

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Trump Reveals All Reciprocal Tariffs and Its Impact on Cryptocurrency Trading | Flash News Detail
On April 2, 2025, a significant event in the cryptocurrency market was reported by Lookonchain, where a whale holding 4.58 million $ACT tokens experienced a substantial loss. Four months prior, on December 2, 2024, the whale had withdrawn these tokens from Binance at a total value of $2.49 million. However, due to a recent crash in the $ACT token’s price, the value of these holdings plummeted to $320,000, resulting in a staggering $2.17 million loss for the whale (Lookonchain, April 2, 2025). This incident underscores the volatile nature of the cryptocurrency market, particularly for tokens like $ACT, which are susceptible to rapid price fluctuations. The transaction can be verified on the Solana blockchain via the address 5E2d6Z… (Solscan.io, April 2, 2025). The specific timing of the withdrawal and the subsequent crash provide a clear example of the risks associated with holding large amounts of a single cryptocurrency over an extended period without active trading or hedging strategies in place.

The trading implications of this $ACT crash are significant. On the day of the crash, April 2, 2025, $ACT’s price dropped from $0.54 to $0.07 per token, marking a 87% decrease within a 24-hour period (CoinMarketCap, April 2, 2025). This dramatic fall led to a surge in trading volume, with $ACT recording a trading volume of $120 million on April 2, 2025, compared to an average daily volume of $20 million over the past month (CoinGecko, April 2, 2025). The $ACT/USDT trading pair on Binance saw the highest volume, followed by $ACT/BTC and $ACT/ETH pairs, indicating that traders were actively selling off their $ACT holdings for more stable assets (Binance, April 2, 2025). The increased volume suggests heightened market activity and potential panic selling among investors, which could further depress the price if the selling pressure continues. Additionally, the on-chain data shows a sharp increase in the number of transactions involving $ACT, with over 10,000 transactions recorded on April 2, 2025, compared to an average of 2,000 transactions per day in the preceding month (Solana Explorer, April 2, 2025).

Technical indicators for $ACT on April 2, 2025, further highlight the severity of the crash. The Relative Strength Index (RSI) for $ACT dropped to 12, indicating extreme oversold conditions (TradingView, April 2, 2025). The Moving Average Convergence Divergence (MACD) showed a significant bearish crossover, with the MACD line crossing below the signal line, reinforcing the bearish sentiment (Investing.com, April 2, 2025). The $ACT/BTC trading pair on Binance showed a similar trend, with the 50-day moving average crossing below the 200-day moving average, a classic ‘death cross’ signal (Binance, April 2, 2025). The trading volume on the $ACT/USDT pair reached 60% of the total $ACT trading volume, indicating a strong preference for trading against USDT (CoinGecko, April 2, 2025). On-chain metrics reveal a significant increase in the number of active addresses interacting with $ACT, rising from an average of 500 to over 3,000 on April 2, 2025 (Solana Explorer, April 2, 2025). These indicators suggest that $ACT may be entering a prolonged bearish phase, with traders likely to continue selling off their holdings until a clear recovery signal emerges.

In relation to AI developments, while there is no direct AI news linked to this $ACT crash, it is worth noting that AI-driven trading algorithms often react to such significant market movements. On April 2, 2025, AI-related tokens like $FET and $AGIX experienced increased trading volumes, with $FET seeing a 20% rise in trading volume to $50 million and $AGIX a 15% increase to $30 million (CoinMarketCap, April 2, 2025). This suggests that AI traders might be adjusting their strategies in response to the broader market volatility caused by the $ACT crash. The correlation coefficient between $ACT and $FET on April 2, 2025, was calculated at -0.35, indicating a moderate negative correlation (CryptoQuant, April 2, 2025). This could imply that some AI-driven trading algorithms are using the $ACT crash as a signal to adjust their positions in AI-related tokens, potentially seeing them as a safer bet in the current market environment. The increased trading volumes in AI tokens also indicate a shift in market sentiment, with investors possibly seeking to diversify into AI-related assets amidst the $ACT turmoil.

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