DoJ Attempts to Narrow FTX Founder’s Bail Terms

According to a court document filed on March 3, the US Department of Justice has suggested revised bail guidelines for former FTX CEO Sam Bankman-Fried (SBF).

The recommendation made to Lewis Kaplan, the federal judge overseeing SBF’s criminal fraud case, is that Bankman-Fried be forbidden from using any gadgets that enable voice and chat contact. 

His only available communication options under the plan are “a flip phone or other non-smartphone with either no internet capabilities or internet capabilities disabled.” Access to websites for Bankman-Fried would also be limited to a selection of pre-approved sites, such as YouTube, Wikipedia, and a few others.

FTX Founder Cannot Use VPN

The temporary bail conditions prevent using a virtual private network (VPN), in addition to any encrypted or brief call or chat service, and all contact or communication with current or former FTX or Alameda Research employees unless made in the presence of legal representation.

In the document submitted “on behalf of parties,” attorney Damian Williams also asks that the newly imposed temporary bail terms be made permanent. The defense team for SBF was asked to submit a proposal by March 3.

According to the proposal, “the defendant will not object to the installation of court-authorized pen registers on his phone number, Gmail account, and internet service. Those pen register orders will be sought by the Government and maintained by the Federal Bureau of Investigation.“ 

Recall that the prosecutors had previously requested that SBF’s bail terms be changed because he had communicated with one of the witnesses using encryption. The prosecutors were concerned that if Sam had access to the witnesses, he might twist their evidence.

Moreover, following requests from numerous media organizations, Kaplan ordered the disclosure of the records containing the names of the guarantors who jointly signed Bankman-Fried’s $250 million security bond. It’s interesting to note that SBF’s parents have some connections to the two sureties Larry Kramer and Andreas Paepcke.