FTX establishes surety agreement | Blockchain News
The legal saga surrounding FTX founder Sam Bankman-Fried continues as new developments emerge in his case. On March 27, Bankman-Fried’s attorneys reached a new bail deal with U.S. prosecutors that would allow him to remain at home while restricting his use of electronic devices and apps. The proposed deal is still subject to approval by U.S. District Judge Lewis Kaplan, who is overseeing Bankman-Fried’s case.
The proposed bail conditions would prohibit Bankman-Fried from using a smartphone with internet access and apps other than voice calls and text messages. He will also be required to use a basic laptop with limited features and monitoring software to track user activity. The use of other electronic communication devices is prohibited. Additionally, if there is “reasonable suspicion” of a violation, Bankman-Fried must submit its devices for searches.
The need for new bail conditions arose after Judge Kaplan expressed concern about Bankman-Fried’s access to electronic devices and the internet. In an earlier hearing, the judge tried to ban Bankman-Fried from using electronic devices and the Internet as a condition of bail. He claimed that Bankman-Fried had a “garden of electronic devices” with internet access available at her parents’ home in California. Judge Kaplan also alleged that there was “probable cause” to believe that Bankman-Fried was involved in attempted witness tampering.
To address those concerns, Bankman-Fried’s attorneys proposed the new bail agreement that would limit his access to electronic devices and the Internet. The agreement also includes provisions for Bankman-Fried’s parents to limit his access to their devices and sign affidavits agreeing not to bring prohibited electronic devices into their home.
Bankman-Fried is accused of stealing billions of dollars in FTX client funds facilitated through Alameda Research and making large illegal political donations. He has pleaded not guilty to eight criminal counts, which could result in 115 years in prison if convicted. His trial is set for October 2, 2023.
In December 2022, Bankman-Fried was released on bail with conditions that included a $250 million bond, house arrest, location monitoring and surrender of his passport. A few days later, however, industry investigators reportedly saw transactions involving Bankman-Fried cashing out around $700,000 in a crypto exchange in the Seychelles. Bankman-Fried has denied involvement in this or other transactions allegedly linked to him or FTX.
Although Bankman-Fried has not been banned from Twitter, he has refrained from social media activity for some time. His last visible activity on Twitter included a repost that Sullivan & Cromwell was continuing to represent FTX debtors on Jan. 20 and a “like” on a report that the firm billed $7.5 million for the first 19 days of FTX work.
