U.S. Seeks Tighter Bail for FTX Founder Bankman-Fried to Prevent Evidence Tampering

NEW YORK—U.S. New York–U.S. Bail Sam Bankman-Fried conditions, which expressed concern that the founder FTX He might use cryptocurrency exchange to tamper or destroy evidence in his criminal case.

Citing Bankman-Fried’s “recent attempts to contact prospective witnesses,” Prosecutors asked U.S. District Judge Lewis Kaplan for a ban on Bankman-Fried communicating with any family members or current or former employees of FTX and his Alameda Research hedge funds, unless a lawyer is present.

They asked Bankman-Fried to not use Signal or any other encrypted call and message applications. However, he could still communicate via text messages, email and the phone.

Bankman-Fried (30) was released on $250 million bond. He is now required to live with his parents after pleading guilty to the theft of billions from the bankrupt FTX.

Bankman-Fried lawyers did not respond immediately to inquiries for comment.

In Friday’s letter, prosecutors cited a Signal message on Jan. 15 from Bankman-Fried to “Witness-1,” The general counsel of the FTX U.S. affiliate. Bankman-Fried expressed an interest in having a “constructive relationship” Oder “at least vet things with each other.”

Prosecutors claimed that this was the truth. “particularly concerning” because Bankman-Fried knew the general counsel had potentially damaging information, having participated just before FTX’s November collapse in communications in which Bankman-Fried discussed using Alameda funds to satisfy FTX customer withdrawals.

“The defendant’s request to ‘vet things with each other’ is suggestive of an effort to influence Witness-1’s potential testimony, and the appeal for a ‘constructive relationship’ likewise implies that Witness-1 should align with the defendant,” According to prosecutors.

“Even if the defendant has not directly attempted to tamper with witnesses, [his] contact with witnesses may intimidate them” Prosecutors also suggested that they not testify or come forward.

Prosecutors said that Bankman-Fried directed that Signal and Slack communications be automatically deleted by him in 2021. This was to prevent Bankman-Fried from Signal.

Prosecutors claimed that Caroline Ellison, former Alameda chief, pleaded guilty and is cooperating with them. They also stated that Bankman-Fried indicated that it might be more difficult to build legal cases if there was not enough information.

Jonathan Stempel

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