FTX Founder’s Bail Terms to be Changed: Details
- FTX founder SBF contacted a crucial witness, attempting to “reconnect and see if there’s a way for us to have a constructive relationship.”
- US attorneys seek to restrict the access that SBF has to encrypted communication platforms to prevent him from contacting former employees.
- SBF also directly opened a communication line with the current general counsel of FTX US.
- The former FTX CEO also communicated with employees of the exchange as well as Alameda Research via email and Signal
The founder of crypto exchange FTX, Sam Bankman-Fried, also known as SBF in the crypto space, made an attempt to influence a witness in the case wherein authorities are investigating the collapse of the multi-billion dollar crypto exchange, said the prosecutors in a letter to the court. There are several allegations against the crypto entrepreneur, including fraud charges and mismanagement of customers’ funds.
As per court documents, the US attorneys seek to restrict the access of the former FTX executive to encrypted messaging services and also impose a ban on communication with former employees of the exchange as well as its sister trading company, Alameda Research. It is crucial to note that the person named as ‘Witness-1’ was approached by SBF who said,
“I would really love to reconnect and see if there’s a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other.”
On the other hand, the document noted that the founder of FTX contacting ‘Witness-1’ “is particularly concerning given that the defendant is aware that ‘Witness-1’ has information that would tend to inculpate the defendant.”
“The appeal for a ‘constructive relationship’ likewise implies that Witness-1 should align with the defendant. This is particularly concerning given that the defendant is aware that Witness-1 has information that would tend to inculpate the defendant,” the document added.
Moreover, SBF also directly opened a communication line with the current general counsel of FTX US, the US arm of the bankrupt exchange, which is also facing issues of its own after filing for bankruptcy in 2022. Officials say that the general counsel might also be a key witness in the near future, and as a result, it would not be suitable for the former executive to contact them.
Another important fact is that the founder of FTX also communicated with employees of the exchange as well as Alameda Research via email and Signal, which is consistent with “a history of using the application for obstructive purposes,” according to the document.
As reported earlier by Bitnation, Bankman-Fried was granted bail with strict conditions that limit his movement and financial activities with a $250 million price tag. However, the bail bond imposed no restrictions on communication with prospective witnesses, which the former CEO seems to be taking advantage of. Additionally, SBF is also banned from starting any business and must seek approval for transactions exceeding $1,000.
The court looking into the collapse of the exchange released a document that contained the names of all the creditors of FTX which included big tech players, local businesses in the Bahamas, airlines, charities, and media firms. Moreover, the exchange’s lawyers plan to question Bankman-Friend’s family under oath on whether they received monetary benefits from the exchange.