Sam Bankman-Fried is Permitted to Use Flip Phone, DOJ Says

After revealing Sam’s Kaplan virtual private network, the court decided to impose certain restrictions on his internet use, including the non-internet connected mobile.

According to the court filings, “The defendant shall not use any encrypted or ephemeral call or messaging application, including but not limited to ‘Signal.’ According to the report, Bankman-Fried’s laptop can be used to access specific websites, including OTT platforms, and sports websites. The list of websites for SBF’s personal use; that have been categorized as safe as per the government includes 23 websites.

According to the February 24 filing, Mark Cohen of Cohen and Gressler said they are working on a proposal for additional bail conditions and finding a better candidate to work as a technical expert in the case. The legal team agreed to appoint someone following the February 16 hearing on Sam’s use of a virtual private network (VPN).

Damian Williams, US Attorney, said that the decisions as mentioned above were made “on behalf of the parties” who agreed to the specific terms. According to the filing, Sam’s parents have to accept the condition of not bringing additional internet devices to their homes and make sure that the former FTX CEO cannot use their services.

On December 13, the US attorney general revealed that the former FTX CEO was arrested in the Bahamas. After the arrest, he was released on a $250 million bond package. In mid-January, Sam Bankman-Fried pleaded not guilty to all eight counts of criminal charges. According to reports, his trial date has been set for October 2, 2023.

On December 21, Damian Williams, American attorney, said that the former Alameda Research CEO Caroline Ellison and former FTX CTO Gary Wang pleaded guilty to misleading FTX investors. Bankman-Fried is also facing lawsuits by the CFTC and SEC over similar charges.

Last year the crypto market was highly affected by bankruptcies and cyber attacks. Crypto investors and users had faced the worst bear markets due to the sudden collapse of FTX. One of the biggest collapses in crypto history happened on November 11, 2022. FTX, once the world’s second-largest crypto exchange platform, valued at $32 billion (USD) at its peak, owed millions of frustrated customers money at the end of 2022 due to its liquidity and solvency concerns.

According to the Bank for International Settlements (BIS) report, more than $450 billion disappeared during the market turmoil following the downfall of Terra in May 2022, and another $200 billion was lost in FTX bankruptcy in November 2022.