The story of FTX founder Sam Bankman-Fried (SBF) continues to unfold as lawyers and courts continue to wrangle over his bail conditions.
SBF's lawyers have reportedly negotiated a new bail deal with U.S. prosecutors that will allow him to stay at home while restricting his use of some electronic devices and apps.
The lawyers reached the new deal on March 27 after a judge raised the need to send SBF to jail to await trial, according to Reuters. The new bail conditions have not been approved by U.S. District Judge Lewis Kaplan, who is overseeing Bankman-Fried's case. Under some proposed new conditions, Bankman-Fried will reportedly be banned from using smartphones with Internet access, and any apps other than voice calls and text messages. The agreement also required SBF to use basic laptops with limited capabilities and monitoring software to track user activity. The use of any other electronic communication devices is prohibited.
In a letter Monday, SBF's parents reportedly agreed to limit his use of their devices, while also signing an affidavit not to bring prohibited electronic devices into the home. If there is "reasonable suspicion" of a violation, the SBF must submit his device for search.
The new agreement comes weeks after Judge Kaplan attempted to bar SBF from using any electronic devices and the internet as a condition of his bail. The judge argued that SBF owned a "garden of electronic devices" and had access to the Internet at Joe Bankman and Barbara Fried's California home. Judge Kaplan also argued that there were "probable grounds" to believe the SBF was involved in an attempt to tamper with witnesses.
In early March, Kaplan reportedly raised concerns about a proposal to impose certain restrictions on SBF's phones and other electronic devices. He specifically suggested that the SBF be creative and find ways to circumvent the restrictions. As previously reported, SBF faces trial scheduled for October 2, 2023, on charges of stealing billions of dollars in FTX client funds through Alameda Research. He was also accused of making a large number of illegal political donations. He pleaded not guilty to eight criminal counts and could face up to 115 years in prison if convicted.
In December 2022, Bankman-Fried was released on a $250 million bond, home detention, location monitoring and surrender of his passport. A few days later, some industry investigators discovered that around $700,000 was cashed out on a Seychelles-based cryptocurrency exchange allegedly involving SBF. The FTX founder subsequently denied involvement in this or any other alleged SBF or FTX-related transactions. While SBF hasn't been banned from Twitter so far, he has stayed away from any social media activity for some time. His last visible activity on Twitter included a Jan. 20 retweet of a post about Sullivan & Cromwell continuing to represent FTX debtors, and a "retweet" of a report about the firm taking $7.5 million in fees in its first 19 days at FTX. Thumbs up".
