The lawyer representing crypto entrepreneur Sam Bankman-Fried (SBF) in the current FTX case will soon present a revised bail package to Judge Lewis Kaplan of the Southern District of New York. The move came after Kaplan expressed dissatisfaction with SBF’s use of encrypted messaging applications and virtual private network (VPN) services while under bail.
Litigation surrounding the collapse of FTX resulted in SBF avoiding possible 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 FTX and Alameda colleagues. Judge Kaplan banned SBF from using such apps and threatened to forfeit bail if they acted out of order.
Following that order, Bankman-Fried’s attorney, Christian R. Everdell, said on March 18 that the SBF and federal prosecutors “worked diligently to agree on a set of specific bail conditions that would allay the concerns expressed by the government and the court,” according to Bloomberg. In the letter, Everdell stated:
“We believe we are close to a decision and expect to be able to present a proposed order outlining these terms to the court next week.”
SBF pleads not guilty to claims of misappropriation of FTX user funds. However, the entrepreneur could face up to 115 years in prison if found guilty on eight counts.
Related: FTX Debtors Report $11.6B Claims, $4.8B Assets, With Many Crypto Assets ‘Undetermined’
As part of FTX’s ongoing restructuring, the current administrators revealed that the former top management of FTX and Alameda Research received $3.2 billion in payments and loans from FTX-related entities.
From this lot, Bankman-Fried reportedly received the lion’s share of the $2.2 billion in funds.
As reported, FTX management is investigating its rights to bring potential claims against recipients and their subsequent recipients.
