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Former FTX Co-Founder Has it Coming – Details

Federal prosecutors have requested that the ex-crypto leader be restricted to using a flip phone and allowed access only to a limited selection of websites.

The creator of the defunct digital currency exchange FTX and its affiliated firm Alameda Research may face additional restrictions on his living conditions before his trial.

The individual, who previously had significant liberty, may now face significant limitations on his lifestyle. Specifically, federal prosecutors have requested that the court overseeing his case approve restrictions on his use of communication tools and services as part of various changes to the terms of his bail. The request was made last week.

Federal prosecutors have accused the individual of purported wire fraud, securities fraud, and several counts of conspiracy concerning Alameda’s lenders and FTX customers. Other charges include bank fraud, running an unauthorized money-transfer enterprise, money laundering, and illegal campaign contributions.

Sam Bankman Fried, the crypto king, has pleaded not guilty, while three of his subordinates admitted to committing fraud and made a deal to assist investigators.

Bankman Flip Phone Utilization

Following his extradition from the Bahamas, where he resided and where FTX had its headquarters, the ex-trader was granted bail on December 2022. His parents secured his release by signing a two hundred and fifty-million-dollar bond and using their home in California as security. However, his hearing is scheduled for late this year.

For instance, if Judge Lewis A. Kaplan rules in favor of the federal prosecutors, Bankman-Fried’s access to technology will be restricted to a non-smartphone or flip phone, and he will only be permitted to browse a restricted set of websites.

According to a court filing that was made public on March 3rd, the United States Attorney for the Southern District of New York suggested that the defendant’s use of technology is restricted to specific devices and that he be prohibited from using any other devices such as computers, tablets, cell phones, video games comprising of hardware and gaming platforms that facilitate voice communication and chat, or smart devices with internet potential.

Williams specified that the ex-crypto king could only access a flip phone or another non-smart device without internet potential. The phone’s communication ability will be restricted to voice calls and text messages, and any other messaging apps will be restricted.

Sam Bankman-Fried will be provided with a new laptop, but the device’s MAC address, IP address, and serial number will be disclosed to the court and the government. In addition, he will be permitted to connect to the internet via an approved VPN.

Williams stated that the parties recommend that the defendant’s new laptop be set up to restrict internet access to approved VPNs, which will only grant access to pre-approved websites.

Witness Tampering

After discovering a risk of witness interference, Kaplan suggested that he might revoke Sam Bankman-Fried’s bail. As a result, Bankman-Fried’s bail terms have now been made more stringent.

Bankman-Fried contacted FTX’s former general counsel a few days after being released on bail, using a VPN despite the judge’s intention to limit encrypted device usage. In light of this, a limited list of applications has been determined for the ex-trader’s laptop.

The prosecution also requests that Bankman-Fried’s parents, with whom he presently resides, consent to not allowing him to utilize their technological devices.

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