FTX News: Sam Bankman Fried Reached an Agreement with the U.S. Prosecutors?
A dispute that arose recently between Sam Bankman Fried and federal prosecutors over his use of encrypted messaging apps while he was being held on bail and communications with former FTX employees has been resolved. This is after FTX news broke that the former CEO attempted to contact an ex-employee via the Signal messaging app.
SBF’s New Bail Conditions
The revised bail conditions stipulate that the 30-year-old business tycoon, who pleaded not guilty in fraud charges related to the collapse and recovery of the cryptocurrency exchange, will not use encrypted messaging apps such as Signal. He will still be allowed to send normal text messages and make Zoom and Facetime phone calls. SBF was also told that he could use messaging services such as WhatsApp if he agreed to install monitoring software on his smartphone.
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Mark S. Cohen, representing Bankman-Fried provided details of the new conditions in a letter submitted to the federal court at Manhattan on Monday. U.S. District Judge Lewis A. Kaplan had previously scheduled a hearing to decide whether or not to grant Bankman-Fried’s request to ban Bankman-Fried using encrypted applications and communicating directly with former FTX colleagues.
SBF Trying to Tamper Evidence
According to Cohen, the parties had reached an agreement on a small group of former FTX employees, with whom Bankman-Fried would refrain from speaking. Cohen requested that the Thursday hearing be cancelled. SBF did not name the individuals they had agreed not to contact. Cohen had previously stated that he had suggested a group that would include Gary Wang, a former FTX cofounder and Alameda Research CEO Caroline Ellison. Ellison and Wang both pleaded guilty to fraud and are now working together with the authorities.
Prosecutors sought a prior ban on communication with former coworkers because of the risk that Bankman Fried would tamper witnesses. Cohen said that the defense had also retracted its objections to an earlier bail condition made by the government. This prevents Bankman-Fried’s ability to relocate any assets related to FTX and Alameda.
After being arrested in December for criminal fraud suspicions, the disgraced cryptocurrency entrepreneur is now under house arrest. He has posted a bail of $250 million. SBF has entered a not guilty plea and is currently in custody as he awaits his trial. The trial is scheduled to begin on October 2, according to FTX news. The U.S. District Court for Southern District of New York (Manhattan) has assigned the code 22CR-673 to the ongoing FTX case.
Also read: Here’s How Much John J. Ray III, the new CEO of FTX, Made in Just 2 Months
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