Federal prosecutors are trying to prohibit FTX founder Sam Bankman-Fried from contacting current and former employees of the bankrupt cryptocurrency exchange to prevent potential witness tampering.
FTX founder Sam Bankman-Fried leaves Manhattan federal court on Jan. 3, 2023, in New York, after he pleaded not guilty to charges that he cheated investors and looted customer deposits on his cryptocurrency trading platform. Federal prosecutors on Friday, Jan.
Bankman-Fried, 30, has been under confinement at his parents’ home in Palo Alto, California, since pleading Federal prosecutors told Kaplan that Bankman-Fried’s communications are a sign that he may be trying in influence a witness with incriminating evidence against him. As a safeguard, the prosecutors want Kaplan to revise the conditions of Bankman-Fried’s bail so he can’t communicate with current or former employees of FTX and Alameda Research outside the presence of a lawyer without a waiver from the Justice Department.
Federal prosecutors also want Kaplan to change the conditions of Bankman-Fried’s bail to prevent him from communicating through Signal, which has an auto-delete option to make messages quickly disappear in addition encryption technology to help shield the contents from outsiders.
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