FTX Founder SBF Now Barred From Performing These Activities

On Wednesday, US District Judge Lewis Kaplan placed a temporary restraining order against Sam Bankman-Fried, founder of FTX, preventing him from communicating with current or former employees of his cryptocurrency exchange or hedge fund Alameda Research. Bankman-Fried is also prohibited from using any encrypted messaging tools such as Signal.

SBF Banned From Apps & Contacts

After the defendant communicated with a former co-worker using Signal several weeks ago, federal prosecutors in New York asked the court to impose new bail conditions on the 30-year-old man facing fraud charges over the collapse of the FTX empire. The accusations stem from the fact that the defendant was accused of causing the collapse of cryptocurrency exchanges, which led to a number of bankruptcies by related companies and a complete bloodbath in the crypto market.

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Additionally, on January 2, Bankman-Fried emailed John J. Ray III, his successor as chief executive officer of FTX, requesting that the two meet in person. John Ray, who took over as the new CEO after Bankman-Fried stepped down, is currently focused on reorganizing the company while working to recover funds lost by the company’s depositors.

SBF Trying To Tamper With Evidence?

Lawyers for Bankman-Fried contested the new bail terms, claiming that their client Signal’s message to FTX US general counsel on Jan. 15 was an innocent attempt to offer assistance in ongoing bankruptcy proceedings. However, public counsel was also named as a witness in government court files, and prosecutors argued that Bankman-Fried may have attempted to influence the man’s testimony in the case. Although Ryne Miller’s identity as FTX’s US general counsel was not disclosed in court documents, she continued to serve in that capacity following the company’s November bankruptcy filing.

While on the topic of the message that SBF reported to Ryne, the text is quoted as follows:

I’d really like to reconnect and see if there’s a way for us to have a constructive relationship, use each other as a resource whenever possible, or at least check in on each other’s issues.

On Wednesday, United States District Judge Lewis Kaplan agreed to set up a hearing on February 7, but in the meantime, he is imposing government restrictions. As part of a $250 million guarantee, Bankman-Fried is currently living at his parents’ home in Palo Alto, California. On January 3, he entered a plea of ​​not guilty to the charges against him.

Also read: This Little Trick Can Help US Investors Save Money From Crypto Taxes

Pratik has been a crypto evangelist since 2016 & has gone through almost everything crypto has to offer. Be it the ICO boom, the bear market of 2018, Bitcoin halving to now – he’s seen it all.

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