Sam Bankman-Fried and the US resolve their bail disagreement on encrypted apps.

By CoinUnited.io Research Team

7 Feb 2023

1 min read

Sam Bankman-Fried has reached an agreement with federal prosecutors over his use of encrypted messaging applications and interactions with former FTX workers while he was out on bail.

As part of his revised bail conditions, the FTX co-founder, who has pleaded not guilty to fraud charges related to the collapse of the cryptocurrency exchange, has agreed not to use encrypted messaging apps like Signal. However, he will be permitted to send regular texts and make video calls using Zoom and Facetime. If he installs tracking software on his phone, he may utilize WhatsApp as well.

Lawyer Mark S. Cohen, who is representing Bankman-Fried, outlined the revised terms in a letter filed with the federal court in Manhattan on Monday. The prosecution's motion for a restriction on Bankman-use Fried's of encrypted applications and interactions with former FTX coworkers was slated for a hearing on Thursday before US District Judge Lewis A. Kaplan.

Cohen requested that the hearing be postponed because he and Bankman-Fried had settled on a more narrow group of former FTX workers with whom the latter would have no contact. The potential that Bankman-Fried would tamper with witnesses was raised when prosecutors previously attempted to bar any communication with former colleagues.

Ellison and Wang have both admitted guilt and are helping the government in their investigation of fraud.

He also suggested a meeting in New York with John J. Ray, FTX's new CEO and the man in charge of the asset recovery process.

Cohen also stated that the defense no longer objects to the government's prior bail condition that prohibits Bankman-Fried from transferring any assets related to FTX or Alameda.

After being freed from custody in December on a $250 million bail package, Bankman-Fried has been residing at his parents' home in Palo Alto, California. For years, he allegedly defrauded FTX customers by diverting their money to his own trading account in Alameda and other personal needs.

Federal District Court, Southern District of New York; Case No. 22-cr-673 (Manhattan).

Bankman-attorney, Fried's Mark S. Cohen, outlined the revised terms in a letter filed with the federal court in Manhattan on Monday. The prosecution has requested that Bankman-Fried be prohibited from using encrypted applications and communicating with former FTX colleagues, and US District Judge Lewis A. Kaplan has set a hearing for this Thursday.

Cohen requested that the hearing be postponed because he and Bankman-Fried had settled on a more narrow group of former FTX workers with whom the latter would have no contact. The potential that Bankman-Fried would tamper with witnesses was raised when prosecutors previously attempted to bar any communication with former colleagues.

Ellison and Wang have both admitted guilt and are helping the government in their investigation of fraud.

He also suggested a meeting in New York with John J. Ray, FTX's new CEO and the man in charge of the asset recovery process.

Cohen also stated that the defense no longer objects to the government's prior bail condition that prohibits Bankman-Fried from transferring any assets related to FTX or Alameda.

After being freed from custody in December on a $250 million bail package, Bankman-Fried has been residing at his parents' home in Palo Alto, California. For years, he allegedly defrauded FTX customers by diverting their money to his own trading account in Alameda and other personal needs.

Federal District Court, Southern District of New York; Case No. 22-cr-673 (Manhattan).

(More information added, based on a legal filing.)

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