Attorneys representing crypto entrepreneur Sam Bankman-Fried (SBF) in the ongoing FTX case will present a revised bail package to Judge Lewis Kaplan of the Southern District of New York. The move comes after Kaplan expressed displeasure over the use of encrypted messaging apps and SBF’s virtual private network (VPN) service at the time of his release.
Legal proceedings over the FTX fallout resulted in SBF avoiding jail time with a $250 million bail bond. However, when warrants were issued, the businessman used Signal, an end-to-end encrypted messaging service, to contact his former FTX and Alameda colleagues. Kaplan banned SBF from using the app and threatened to revoke their privileges if they behaved inappropriately.
Following the order, Bankman-Fried’s lawyer, Christian Everdell, announced on March 18 that SBF and federal prosecutors “have been working hard to agree on a set of special bail conditions that will address the concerns raised by the government and the court.” Bloomberg reported. In the letter , Everdell stated:
“We believe we are close to a resolution and expect to present the court with a proposed order clarifying the situation in the coming weeks.”
SBF maintains innocence in claims related to misuse of FTX user funds. However, the businessman could face up to 115 years in prison if convicted of the eight charges against him.
related: FTX debt reports $11.6B in claims, $4.8B in assets, with many crypto holdings ‘unspecified’
During the restructuring of FTX, the administrators now say that FTX and Alameda Research have received payments and loans of $3.2 billion from entities related to FTX.
View the recently published FTX Debtors press release: https://t.co/r7PlneGSXF
– FTX (@FTX_Official) March 16, 2023
Of that amount, Bankman-Fried reportedly received the largest grant at $2.2 billion.
As reported by Cointelegraph, FTX management is investigating the rights to pursue potential actions against the recipient and subsequent transferees.