Cryptocurrency

SBF restricted from using Signal, communicating with FTX associates

Federal Judge Lewis Kaplan has imposed communications restrictions on former FTX CEO Sam Bankman-Fried. February 1 Court Submissions.

The ruling imposes two limitations. First, Bankman-Fried is banned from using encrypted, self-deleting messaging apps, including Signal⁠. It’s a popular messaging app he’s used to communicate with his employees in the past.

Second, Bankman-Fried is prohibited from communicating with current and former employees of FTX and Alameda Research. unless those individuals are exempt, are his immediate family members, or he is in the presence of an attorney.

Government prosecutors have been trying to get a judge to impose these terms on Bankman-Fried since Jan. 27. John Ray III.

Prosecutors allege Bankman-Fried contacted these individuals to influence their testimony. Meanwhile, Bankman-Fried suggests that the conversation he attempted was related to another bankruptcy case for his FTX.

Kaplan said today that Bankman-Fried’s “harmless” account “preliminarily doesn’t sound like a persuasive read.” Kaplan said Bankman-Fried explained in his message that he was apparently mending a personal relationship.

The judge also noted that when Bankman-Fried headed FTX, he directed others to enable auto-delete on certain apps. He also told Caroline Ellison, former CEO of Alameda Research, that the lack of stored information could make litigation difficult.

As such, Kaplan said today that there is sufficient risk to justify imposing new restrictions on Bankman-Fried while he is out on bail.

After Bankman-Fried and his legal team filed their own arguments in a cross-file, the restrictions could be overturned, and a court hearing will be held on February 7. .

Bankman-Fried and his legal team will seek to lift restrictions on his ability to access FTX and Alameda Research funds at that time.

Posted In: FTX, USA, Legal

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