The attorney representing Sam Bankman-Fried (SBF) in the FTX case will present a revised version of the bail to Judge Lewis Kaplan of the Southern District of New York shortly. The decision was made following Kaplan’s disappointment with SBF’s use of encrypted messaging apps and virtual private network (VPN) services while on bail.
Legal proceedings related to FTX’s bankruptcy resulted in SBF avoiding jail time thanks to a $250 million bail. However, while on bail, the entrepreneur used Signal, an end-to-end encrypted messaging service, to contact former colleagues at FTX and Alameda. Judge Kaplan barred SBF from using those apps and threatened to revoke bail privileges if it acted improperly.
Bankman-Fried’s attorney, Christian R. Everdell, disclosed on March 18 that SBF and federal prosecutors “have worked diligently to agree on a set of specific bail conditions that address the concerns expressed by the government and the court,” he said. reported Bloomberg. In the letter, Everdell stated that:
“We believe we are close to a solution and hope to be able to submit a proposal to the court outlining these conditions by next week.”
SBF maintains its innocence regarding the allegations of misappropriation of FTX users’ funds. However, the entrepreneur could face 115 years in prison if found guilty of the eight counts.
During the FTX reorganization, the current directors disclosed that the former top management of FTX and Alameda Research received $3.2 billion in payments and loans from FTX-related entities.
We share the press release just issued by FTX debtors: https://t.co/r7PlneGSXF
— FTX (@FTX_Official) March 16, 2023
Bankman-Fried reportedly received the bulk of the funds, amounting to $2.2 billion.
As Cointelegraph reported, FTX management is investigating its rights to take potential actions against recipients and their subsequent assignees.
