Important crypto news regarding FTX, the exchange that collapsed in November, and Sam Bankman-Fried, former CEO and subsequently investigated for the exchange’s collapse. Apparently, the judge recently requested a review of SBF’s bail conditions.
Specifically, the deal is that SBF’s $250 million bail will be revoked unless the former CEO agrees to strict limitations on Internet use. The news is also confirmed by Watcher Guru’s official Twitter account, which reads:
JUST IN: US Judge to revoke SBF’s $250 million bail unless he agrees to severe restrictions on internet use.
— Watcher.Guru (@WatcherGuru) February 16, 2023
FTX crypto news: judge’s demands to SBF, all the details
After being released on bail, Sam Bankman-Fried, former CEO of FTX crypto exchange, was placed under house arrest. However, his bail was not so easy, as it came with a plethora of conditions.
The first were that he was restricted from talking to current and former FTX employees. The judge of the US District Court for the Southern District of New York was persuaded by federal prosecutors to further modify the conditions of his release.
It was brought to light that SBF was using a virtual private network [VPN] to watch soccer. He reportedly did so twice to stream National Football League playoff games.
However, the allegation was not met, so an attempt was made to ask the court to prohibit SBF from using phones and even the Internet. He would be allowed to use these benefits only under specific circumstances.
Under its previous terms, he was barred from using encrypted or ephemeral messaging applications. The notice further stipulated the following:
“Within a month, the defendant used at least two encryption methods in such a way as to justify changing his bail conditions. His behavior shows that the existing conditions leave too much room for the circumvention of restrictions aimed at preventing inappropriate behavior, including contact with witnesses and access to cryptocurrency assets.”
This court filing also prevents SBF from using tablets, computers, and even cell phones, as mentioned earlier.
How will the former CEO of FTX communicate now?
The former FTX CEO will have access to discovery materials and will be able to communicate with his lawyers via Zoom or e-mail using his Gmail account. He will also be able to use his phone to make calls and send messages.
It is worth noting that monitoring software installed on his computer and phone keeps track of all his records. Specifically, the new conditions proposed to SBF are, in addition to a ban on the use of cell phones and similar, also authorization to use the Internet for the purpose of discovery review.
Next, permission to use e-mail through his Gmail account and voice calls and text messages through his cell phone. In addition, as anticipated, he will also be able to use Zoom exclusively to communicate with his attorney.
However, SBF is prohibited from using any other mobile phone and computer applications for calls and messaging. And he will be limited to the use of a cell phone and computer with the outside, and both devices will have a device monitoring program installed by Preliminary Services.
Finally, the defendant’s Gmail account and cell phone number will be monitored through the installation of pen registers, and he must submit his electronic devices to a search on the basis that the probation officer has reasonable suspicion about the violations.
In addition, Judge Lewis Kaplan ruled today that the names of SBF guarantors must be disclosed.
Who are SBF’s co-signers in the $250 million bond
Judge Lewis Kaplan officially ordered the unsealing of documents revealing the co-signers of Sam Bankman-Fried‘s $250 million bail bond. According to the documents obtained, the co-signers turned out to be former Stanford Law School dean Larry Kramer and Stanford Research Scientist Andreas Paepcke.
A motion to open the documents was first requested by Inner City Press on 3 January. Subsequently, the judge presiding over the case, Kaplan, blacked out the previously concealed identities of the bail co-signers.
The first of the co-signers was discovered by Molly White as Andreas Paepcke. Unsealed documents revealed that Paepcke financed $200,000 in Bankman-Fried bonds.
The second co-signer of the Bankman-Fried bond turned out to be Larry Kramer, who is the former dean of Stanford Law School. Unsealed documents also reveal that Kramer funded $500,000 of the bond of the former FTX CEO.
Kramer was dean of Stanford Law School from 2004 to 2012 and is the current president of the William and Flora Hewlett Foundation. The connection between Paepcke and Kramer is their affiliation with Stanford University.
The California school employed both of Bankman-Fried’s parents: Joseph Bankman and Barbara Fried. In particular, both parents were employed at Stanford Law School, thereby being connected to Kramer.
Since his arrest and extradition to the United States in November, the identity of those responsible for funding Sam Bankman-Freid’s bail has been a constant question. With the identity showing both Stanford University employees, this is indisputably linked to the profession of both his parents.