Federal prosecutors and Sam Bankman-Fried’s legal team have come to a compromise over his usage of messaging applications. Both parties have agreed that SBF “shall not use any encrypted or ephemeral call or messaging application, including but not limited to Signal,” according to a court document from February 6.
He will have access to FaceTime, Zoom, iMessage, SMS messaging, email, and Facebook Messenger. Additionally, he will be permitted to use WhatsApp, a protected messaging service, but only if “monitoring technology is installed on his cellphone that automatically logs and preserves all WhatsApp communications.”
The most recent accord results from an effort made by federal prosecutors in late January to prevent SBF from getting in touch with current or former workers of FTX or its subsidiary trading company Alameda Research.
Prosecutors said on Jan. 15 that SBF used the encrypted communications app Signal to “influence” the statement of FTX US general counsel Ryne Miller. Bankman-Fried’s attorney, Mark Cohen, sent a letter to United States District Court Judge Lewis Kaplan that was used as the foundation for this revelation.
SBF Lawyers Advocate for his Access to FTX’s Funds
In the letter, Cohen argued that since his client (SBF) had not previously engaged in illicit activities, SBF should be allowed access to the funds owned by FTX.
In addition, FTX’s new CEO, John J. Ray III, acknowledged to a Delaware bankruptcy court on Monday that the exchange is receiving guidance from cybersecurity firm Sygnia following what appears to be a substantial breach in November.
During his appearance before the U.S. House Financial Services Committee, new CEO John Ray III disclosed that he has taken steps to secure more than $1 billion in digital assets.
As bankruptcy proceedings for FTX are now moving forward, a recent ruling by United States District Judge Lewis Kaplan has approved a joint proposal from eight media outlets, including Bloomberg, the Financial Times, and Reuters, who demanded recognition of the two individuals responsible for of securing SBF’s $250 million bail bond in a letter to Kaplan on January 12.