Sam Bankman-Fried, the founder of FTX crypto platform, has been returned to prison less than two months before his impending fraud trial due to allegations of attempting to tamper with witnesses.

The cryptocurrency magnate is facing charges of wire fraud, conspiracy to commit money laundering, and election finance violations, all linked to the collapse of his firm FTX and its sister hedge fund Alameda Research, which went bankrupt in November.

His virtual trading enterprise had previously achieved a market valuation of $32 billion.

Bankman-Fried’s bail revoked

US District Judge Lewis Kaplan revoked Bankman-Fried’s bail, asserting “probable cause … that the defendant has committed the federal crime of attempted witness tampering.”

Prosecutors argued that Bankman-Fried had crossed a line by speaking to The New York Times about his former girlfriend and co-operating witness, Caroline Ellison.

The alleged intimidation involved over 100 calls with a reporter from The Times and was aimed at portraying Ellison in a negative light.

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Bankman-Fried’s lawyers contended that the government’s stance violated the First Amendment and that his return to jail would hinder his ability to mount a defense.

He is also facing charges related to bribes to Chinese officials in an attempt to unfreeze trading accounts.

The trial is scheduled for early October, and prior to his return to prison, Bankman-Fried had been released on $250 million bail largely confined to his parents’ California home.

His once-prominent standing in the finance and tech world crumbled when the interconnectedness of his companies was exposed, revealing misuse of funds and cheating of investors.