The attorney representing crypto entrepreneur Sam Bankman-Fried (SBF) in the ongoing FTX case will soon submit a revised bail package to Judge Lewis Kaplan of the Southern District of New York. The move comes after Kaplan expressed his dissatisfaction with SBF’s use of encrypted messaging apps and virtual private network (VPN) services while he was out on bail.
Legal proceedings surrounding the fall of FTX led SBF to avoid potential jail time on $250 million bail. However, while out on bail, the businessman used Signal, an end-to-end encrypted messaging service, to communicate with former colleagues at FTX and Alameda. Judge Kaplan banned SBF from using such apps and threatened to revoke bail privileges if it acted out of order.
Following up on this order, Bankman-Fried’s attorney, Christian R. Everdell, revealed on March 18 that the SBF and federal prosecutors “have been working diligently to agree on a set of specific bail conditions that will address the concerns expressed by the government and the court”, Bloomberg reported. In the letter, Everdell stated:
“We believe we are close to a resolution and anticipate being able to file a proposed order outlining these conditions with the court by next week.”
SBF maintains its innocence in lawsuits over misappropriation of FTX user funds. However, the businessman could face 115 years in prison if he is found guilty of all eight criminal charges.
Related: FTX debtors report $11.6bn in claims, $4.8bn in assets, with many “undetermined” cryptocurrency holdings
During FTX’s ongoing restructuring, current managers disclosed that FTX and former Alameda Research senior managers received $3.2 billion in payments and loans from entities linked to FTX.
Sharing the newly issued FTX debtors press release: https://t.co/r7PlneGSXF
-FTX (@FTX_Official) March 16, 2023
Out of the lot, Bankman-Fried reportedly received the lion’s share of the funds at $2.2 billion.
As Cointelegraph reported, FTX management is investigating its rights to take potential action against the recipients and their subsequent assignees.
