Jeffrey Epstein, a former financier with powerful connections across the globe, was in the special housing unit for high-profile prisoners awaiting trial on charges of sex-trafficking underage girls.
Mr Epstein had pleaded not guilty, and if convicted, the 66-year-old would have faced 45 years in prison.
The anonymous source continued to describe what the conditions a prisoner on suicide watch is in when in the correctional facility, claiming that Jeffrey hanging himself would be impossible.
"When you’re on suicide watch, they put you in this white smock, a straight jacket. They know a person cannot be injurious to themselves.
"The clothing they give you is a jump-in uniform. Everything is a dark brown colour.
"Could he have done it from the bed? No sir. There’s a steel frame, but you can’t move it. There’s no light fixture. There’s no bars."
Epstein's attorney General William Barr said he was 'appalled' to learn of his client's death in federal custody.
In a statement, Mr Barr said: "Mr Epstein's death raises serious questions that must be answered."
According to a report by ABC News, an inmate in the Special Housing Unit at MCC should be checked on by a guard every 30 minutes.
According to ABC News, this safeguard is Bureau of Prison protocol, however, the news site alleges the check was not followed prior to Epstein's death.
Jeffrey Epstein's alleged suicide has since sparked a federal investigation into why the Manhattan jail officers had taken the disgraced financier off suicide watch, with his accusers furious that they will now be denied justice.
Jeffrey Epstein rubbed shoulders with many high-profile figures, including United States president Donald Trump and the Queen's son Prince Andrew.
Prince Andrew has since been under severe scrutiny following Epstein's arrest.
While 59-year-old Prince Andrew was named in court documents released on Friday, Buckingham Palace has emphatically denied all accusations he indulged in sex sessions with underaged girls, allegedly supplied to him by Epstein.
This is a developing story.
Readers seeking support and information about suicide prevention can contact Lifeline on 13 11 14 or Suicide Call Back Service 1300 659 467.