Sam Bankman-Fried, the creator of FTX, has been using the internet while out on bail. On Thursday, a federal judge expressed increasing frustration with this and said that the only way to stop him from using the internet in ways that cannot be tracked is to put him in jail.
Bankman-Fried may stay with his parents in Palo Alto, California, while awaiting trial on allegations that he defrauded investors and stole client money at FTX, his cryptocurrency trading platform, according to a $250 million bail package that Judge Lewis A. Kaplan did not immediately alter.
But he originally suggested that prison could be the only way to make sure Bankman-Fried won’t elude the law by employing technology in ways that can’t be traced.
Bankman-Fried was sitting idly at the defense table when Kaplan stated, “There is a solution, but it’s not one anybody’s presented yet. Then, he pointed out that even with any additional regulations placed on his bail terms, the government may not be able to follow numerous gadgets in Bankman-house. Fried’s
He questioned the prosecutors, “Why am I being asked to let him wild in this garden of electrical devices?”
allegations of transmitting encrypted texts
A more “drastic option,” according to Assistant U.S. Attorney Nicolas Roos, would be to prohibit Bankman-Fried from using any electronic devices, but he noted that if that were to happen, it would be impossible for him to prepare for a trial that is slated to take place in October.
According to the prosecution, Bankman-Fried “has done things that indicate to me that maybe he has committed or tried to conduct a federal offense while on parole,” the court remarked.
Kaplan was making reference to the prosecution’s assertion that on January 15, Bankman-Fried sent an encrypted communication to the FTX US general counsel via the Signal messaging app.
Sam Bankman-Fried, the creator of FTX, enters a not-guilty plea. 05:37
Prosecutors claim that the message read: “I’d really want to get in touch with you again and see if there is any way for us to have a positive connection, use one another as resources when feasible, or at the very least, vet ideas together. I’d love to speak with you on the phone soon.”
Federal prosecutors have informed Kaplan that Bankman-Fried may be attempting to persuade a witness to testify against him based on his conversations.
“Too many opportunities for evasion”
Prosecutors requested Kaplan to impose more restrictions on Bankman-use Fried’s of electronic devices and the internet on Thursday, including a ban on chat apps and the need that a device monitoring software be installed on both his computer and phone.
They said in court documents that he had acted in a way that “shows that the present circumstances offer too much possibility for circumvention of prohibitions intended at preventing improper activity, including contacting witnesses and accessing bitcoin assets.”
They characterized Bankman-Fried as “a technologically savvy individual with the capacity and propensity to attempt circumventions of more stringent bail terms.”
Bankman-attorney, Fried’s Mark Cohen, referred to the prosecution’s suggestions as “draconian” and said that they would make it difficult for both the defendant and the defense team to be ready for trial. Yet when Kaplan pointed out his client’s potential bail infractions, including accessing an encrypted website to watch the Super Bowl, he suddenly found himself on the defense.
The judge made fun of Bankman-Fried for watching the game through an encrypted technique despite the fact that it was available on any television. There wasn’t a TV in the home, Cohen said.
Cohen said, “I believe we understand your statements today, Your Honor, that there is no room for mistake. “So we will be at a totally different procedure if there are any infractions,”
“I want this to be tight, not just tight in characterization, but tight in actuality,” the judge stated in reference to the potential bail limitations.
Since his arrest in December on suspicion of defrauding investors and using their money inadvertently to pay for political contributions and conduct dangerous trades at Alameda Research, Bankman-Fried has been imprisoned with electronic monitoring at his parents’ house. He entered a not-guilty plea.
»Court suggests imprisoning Sam Bankman-Fried to restrict his screen usage«