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- FTX founder can have flip-phone and limited internet while he is on bail, as per the recent report states.
- In a letter seen by Bloomberg, prosecutors involved in his criminal case said that FTX founder’s lawyers agreed to modify the terms of his bail agreement.
FTX Founder, Sam Bankman-Fried will now be allowed to use a flip phone without internet capabilities while on bail.. The list also includes a basic laptop with limited internet features. The US Department of Justice said he will be forbidden from using other electronic communication devices, according to Yahoo Finance.
Restrictions on FTX Founder
On Friday, March 3rd, in Manhattan federal court, a proposal was filed that limits FTX founder’s communications. The proposal was filed on behalf of the government and the FTX founder’s defense team. Now it needs approval by the US District Judge Lewis Kaplan, who is overseeing the case.
The report states that Kaplan signaled during a February 16th hearing that he might jail the FTX founder for testing the limits of his $250 million bail package by communicating in ways that could be hard to monitor.
The US District judge also said that he did not want to set the FTX founder “loose in this garden of electronic devices,” following the claim that the FTX founder tried to contact possible government witnesses and also used a virtual private network to watch football.
Till now, FTX founder pleaded not guilty after prosecutors said he stole billions of dollars of FTX customer funds to plug losses at FTX’s sister firm Alameda Research hedge fund. Bankman-Fried faces 12 criminal charges under an indictment made public on February 23rd.
The proposed flip phone or other non-smartphone for the FTX founder would be restricted to only voice calls and text messages. Additionally, Laptop internet use would be restricted to specific virtual private networks, and 23 other websites for covering news, including Reuters, sports, and food delivery followed by the websites to help the SBF prepare for his scheduled October 2nd trial.
Notably, the FTX founder is under house arrest along with his parents, who were professors at Stanford Law School, in Palo Alto, California. Bankman-Fried’s parents agreed to submit sworn affidavits stating they would not bring other electronic devices into their home or allow their son to use theirs.
According to the letter, the parents of the FTX founder also agreed that every device would carry software that periodically takes videos or photos of the user the court will review.
Last week, in the FTX drama, its co-founder Nishad Singh pleaded guilty to US federal fraud and conspiracy charges. He was FTX’s director of engineering and also the third member of FTX founder’s inner circle to agree to cooperate with prosecutors in the case against him.
However, in 2022 former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to fraud charges. Both of them agreed to their full cooperation with the investigators.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
