On Wednesday, federal prosecutors requested that a New York judge should severely restrict FTX CEO Sam Bankman-Fried’s access to electronics and the internet. They said that he was following a pattern of “problematic conduct.” U.S. attorney Danielle Sassoon sent a letter to Judge Lewis Kaplan that raised concerns about Sam Bankman-Fried’s use of a virtual private network, twice in the recent past.
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According to his lawyer, as he is sometimes referred to, used a private network to watch the Super Bowl and football matches. However, his previous actions including the use of encrypted app Signal to contact potential witnesses has made the prosecutors wary. According to other experts, there was no need for a VPN as the Super Bowl took place in the U.S.
According to the Wednesday court filing, the authorities want Sam Bankman-Fried not to be given access to “cellphones, tablets, computers, and the internet” except in instances such as reviewing defense materials and using email or making and receiving calls and communicating with his counsel.
The Wednesday court filing state that Sam Bankman-Fried’s behavior had shown that “the existing conditions leave too much room” and that it was possible to circumvent the restrictions that were in place to prevent “inappropriate conduct, including contacting witnesses and accessing cryptocurrency assets.”
Sam Bankman-Fried used a VPN “virtual private network.” A VPN can help him avoid third-party monitoring his use of the internet. His lawyer said that he used the VPN to watch football including the Super Bowl. However, a VPN can also give him access to international cryptocurrency platforms and more.
The prosecutors have seen Sam Bankman-Fried’s “problematic conduct” in the past. It can be assumed that the use of a VPN might lead to misuse of the current restrictions.
Bankman-Fried’s lawyers have proposed more lenient bail modifications. They agree to a ban on him communicating with current or former employees of his disgraced FTX company, except his immediate family. They also agree that some restrictions can be placed on messaging platforms.
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Securities lawyer James Murphy spoke on the issue of Sam Bankman-Fried allegedly using VPN to watch football games, according to his lawyer. According to a report in CoinDesk, Murphy said, “In my 30 years doing this, I’ve never seen anything this lenient in a situation where someone has millions of victims of…what is allegedly one of the world’s largest frauds.”
The collapse of FTX has affected the lives of many ordinary shareholders who invested in Sam Bankman-Fried’s company. He has been charged with multiple fraud counts and has pleaded not guilty. He is out on a bond and is staying at his lawyer parents’ home built on land leased by Stanford University.
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