• Sam Bankman-Fried is awaiting trial and has reached a deal with prosecutors regarding communication protocols.
• The judge had imposed limitations on whom SBF could communicate with from his former businesses, including the use of auto-delete apps.
• SBF has been charged with several counts of fraud after it was alleged he used customer funds to pay off loans and invest in luxury Bahamian real estate.
Sam Bankman-Fried Allowed Limited Communication
Prosecutors and former FTX founder and chief executive Sam Bankman-Fried have reached a deal regarding his future contact with past and current employees of the now defunct exchange. A letter from defense lawyer Mark Cohen details how Sam Bankman-Fried can and can’t communicate with others as he awaits his October trial at his parents‘ home.
Protocols Restrict Communication
Granted the judge gives the final seal of approval on the communication protocols, Cohen has said he’ll withdraw a request that will allow SBF to transact in crypto while awaiting trial. U.S. District Judge Lewis Kaplan had recently imposed limitations on who Sam Bankman-Fried could connect with from his former businesses. Aside from not being able to speak with other executives, he was also not denied the use of chat apps like Signal that allow people to auto-delete messages or texts. The idea was that SBF would potentially try to use these apps and his powers of communication to influence or harm witnesses.
SBF’s Bond Requirements
SBF has been freed on a $250 million bond, meaning that if he tries anything funny while out of jail (i.e., he tries to leave the country), those who have put up their money and property as collateral will be forced to part with it permanently to make the $250 million required payment.
Allegations Against SBF
Sam Bankman-Fried has been charged with several counts of fraud after it was alleged that he used customer funds to pay off loans taken out by his other firm Alameda Research. In addition, it’s believed that he used the funds to invest in luxury Bahamian real estate and purchase condominiums for himself, as well as several of his highest-ranking employees.
Transaction Limitations Remain
While the communication restrictions are likely to be taken off the table, Sam Bankman-Fried will still be barred from engaging in transactions over $1,000 except for those required to pay his legal team