U.S. Prosecutors Seek Stricter Bail Conditions for Sam Bankman-Fried

Tighter Bail Conditions for Bankman-Fried

U.S. prosecutors have urged a Manhattan judge to impose stricter bail conditions on Sam Bankman-Fried, the founder of the FTX cryptocurrency exchange. There is a growing concern that Bankman-Fried may tamper with witnesses or destroy evidence related to his criminal case. He has been free on a $250 million bond, residing with his parents, after pleading not guilty to charges of misappropriating billions from the bankrupt exchange.

Communication Restrictions

Prosecutors have requested that Bankman-Fried be barred from communicating with current or former employees of FTX or his Alameda Research hedge fund, except with family and in the presence of a lawyer. They also seek to restrict him from using encrypted messaging apps like Signal, although communication via text, email, and phone would still be allowed.

Witness Tampering Concerns

The request for tighter bail conditions stems from Bankman-Fried's recent contact attempts with prospective witnesses. A notable incident involved a Signal message to the general counsel of the FTX U.S. affiliate, suggesting an interest in maintaining a "constructive relationship." This interaction raised alarms among prosecutors, who believe it might imply an effort to influence potential witness testimony.

Evidence Preservation Issues

Prosecutors highlighted past directives from Bankman-Fried for auto-deletion of Signal and Slack communications, potentially hindering legal investigations. This concern is underscored by former Alameda chief Caroline Ellison, who has pleaded guilty and is cooperating with authorities, indicating such practices could complicate case building if information is not preserved.

The request for stricter bail conditions aims to prevent any interference with the judicial process and ensure the integrity of ongoing investigations.