At a court hearing on Thursday, federal prosecutors and lawyers for FTX’s disgraced CEO Sam Bankman-Fried argued over adding more restrictions to decrease his access to electronic equipment. The entrepreneur of the crypto exchange FTX has been out on bail, at his parents’ home and used a virtual private network to allegedly watch the Super Bowl, which was telecast for free by the Fox network and others across the nation. Earlier in January, Sam Bankman-Fried had tried to influence a potential witness through encrypted platform Signal.
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Prosecutors argue that Sam Bankman-Fried, who caused thousands of investors to lose money after his company FTX collapsed, had used electronics that had great potential for misuse. They said that he had used “at least two methods of encryption” and wanted additional restrictions to be placed on him.
Sam Bankman-Fried’s lawyer Mark Cohen said that his client needed a VPN to access a critical database that contained FTX’s archived financial data such as customer wallets and company transactions. He also said that Sam Bankman-Fried needed to collaborate on Google docs and Microsoft Word for his defense.
Prosecutors are asking for a ruling that would allow him to use only two specific electronic devices–a laptop and a cellphone and that both these devices should be monitored by a pen register.
Judge Kaplan said, “We are dealing with somebody…who has done things that show there is probable cause he attempted to commit a felony while on pretrial release.” He was referring to Sam Bankman-Fried’s attempts to potential witness tampering. He also warned that former FTX CEO’s bail could be revoked.
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The judge also told both the attorneys of Sam Bankman-Fried and the prosecutors to come up with a new set of bail conditions which could monitor as well as prevent such issues in future. He gave them time till next Tuesday to propose new guidelines for Bankman-Fried’s bail conditions and to submit them to the court.
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