Sam Bankman-Fried will be allowed to use a non-internet flip phone under new bail conditions that include restrictions on internet use, according to prosecutors cited by Bloomberg.
The former FTX CEO is still free on $250 million bail but is being held at his parents’ home with an ankle monitor. Prosecutors said in a letter to US District Judge Lewis Kaplan late Friday that the parties had agreed to changes in the terms of Bankman-Fried’s release.
Did Sam Bankman-Fried Attempt to Contact Witnesses?
According to BloombergThe request was filed before Kaplan of the Southern District of New York in response to allegations that Sam Bankman-Fried attempted to contact witnesses.
Additional restrictions include not contacting current or former FTX trading staff or Alameda Research other than immediate family members unless accompanied by an attorney. They also cannot use encrypted or ephemeral phone calls or messaging.
Sam Bankman-Fried. REUTERS/Andrew Kelly/File Photo
Bankman-Fried’s laptop will also be restricted to a whitelist of allowed websites. In a submission, US Attorney Damian Williams stated that the use of video games and other related applications should be banned as well.
They are also not allowed to use virtual private networks, or VPNs, on their phones, which encrypt internet traffic and hide the user’s identity.
Last month, Kaplan banned Sam Bankman-Fried from using a VPN after his lawyer claimed he used one to watch football.
FTX Collapsed And After
The collapse of FTX occurred over a 10-day period in November 2022. The trigger was a November 2 report by crypto news site CoinDesk, which revealed that Bankman-Fried’s trading firm, Alameda Research, maintained a $5 billion position in FTT, the original token of FTX.
According to the report, Alameda’s investment foundation is also funded in FTT, a token created by its sister company, rather than fiat currency or any cryptocurrency.
This has caused widespread alarm in the cryptocurrency industry about the influence and solvency of companies that are not reported.
Bankman-Fried resigned as CEO of FTX on November 11, and was replaced by court-appointed John Ray, who previously led Enron’s major energy trading through bankruptcy proceedings.
Bitcoin (BTC) total market cap at $431 billion on the weekend chart | Chart: TradingView.com
the next morning, FTX filed for Chapter 11 bankruptcy protection, announcing that around 130 other connected entities are also involved in the process. According to the bankruptcy filing, FTX has between $10 billion and $50 billion in assets and liabilities.
Bankman-Fried is accused of masterminding the major fraud that led to FTX’s death in November. In an extensive public statement, he took responsibility for the disaster but claimed he did nothing wrong and pleaded not guilty.
-Image from KCUR