Former FTX CEO, Sam Bankman-Fried (SBF)’s legal saga has taken a new turn as his lawyers and U.S. prosecutors reach a new bail agreement. A Reuters report revealed that on March 27, 2023, SBF’s legal team and U.S. prosecutors reached a new bail agreement that would allow him to stay at home, but with certain limitations on his use of technology.
Sam Bankman-Fried, prosecutors reach new bail agreement https://t.co/fqDsT4wWPq pic.twitter.com/5sIw5rdk4O
— Reuters (@Reuters) March 28, 2023
According to the details of the agreement, Bankman-Fried would not be allowed to use any apps other than voice calls and text messages, and the use of any other electronic communication devices are strictly prohibited. He would also have to use a basic laptop with monitoring software to keep tabs on his activity, and in case of a “reasonable suspicion” of a violation, he would have to submit his gadgets for a search.
Bankman-Fried’s parents have also agreed to limit his access to their computers and sign sworn affidavits promising not to bring unlawful electronic equipment into their house.
However, U.S. District Judge Lewis Kaplan, who presides over the case, is yet to approve the new bail conditions. The new terms would go into effect only after the judge approves the agreement.
Bankman-Fried is currently out on bail at his parents’ Palo Alto, California residence. He was previously released on a $250 million bond after being extradited from the Bahamas.
He pleaded not guilty to eight out of the 12 count charges filed against him and is scheduled to stand trial on October 2 for criminal offences related to embezzling billions of dollars from FTX customers to cover losses incurred by his Alameda Research hedge fund and making illicit political contributions to gain influence in Washington, D.C.
U.S. authorities had earlier requested strict limitations on Bankman-Fried’s access to the internet due to fears of witness tampering. Federal prosecutors in Manhattan claimed that Bankman-Fried contacted a potential witness at trial without the presence of his counsel or the witness’s counsel.
However, Bankman-Fried’s legal team argued that he was attempting to provide assistance rather than engage in illicit conduct. Both parties reached an agreement which was later dismissed by Judge Kaplan on the grounds that Bankman-Fried could easily circumvent the agreement’s provisions.
Judge Kaplan had previously suggested that Bankman-Fried may warrant imprisonment, citing concerns that the presence of electronic devices belonging to his parents, who are both law professors at Stanford University, could impede monitoring his behaviour.
Meanwhile, FTX’s current administrators submitted the Schedules and SOFAs documents for each Debtor Entity involved in the company’s Chapter 11 cases to the Delaware Bankruptcy Court on March 15, 2023. According to the documents, Sam Bankman-Fried (SBF) and five other executives illegally took $3.2 billion from the company.
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