Lawyers and representatives of FTX founder Sam Bankman-Fried have requested that the disgraced crypto entrepreneur be provided with a flip-phone or another non-smartphone device while on bail.
The proposal came in a formal letter sent to the judge in charge of the case on Friday, as the court considers possible measures to make the proceedings more difficult for Bankman-Fried. This comes amid worries that the former billionaire might be using electronic devices to communicate in ways that are untraceable.
Prosecutors have claimed that twice in the past month, Bankman-Fried employed virtual private networks (VPNs) to hide his online activity, and also sent an encrypted message via the Signal messaging app in January, as per FTX US’s General Counsel, which could be seen as witness tampering.
Bankman-Fried has pleaded not guilty to charges of defrauding investors and stealing customer deposits from his crypto platform.
Judge Lewis A. Kaplan is currently assessing the situation, and has suggested that the case might have to be reopened if Bankman-Fried cannot be monitored through his communications, as this could jeopardize the integrity of the trial. The accused could also be hit with a $10 million bond if the court finds any evidence of misconduct.
A bail application of $250 million has been proposed for the former head of FTX, Sam Bankman-Fried. Should the application be approved, the defendant would have to adhere to various restrictions including having only access to a flip phone for SMS messaging and voice calls. Moreover, a laptop with limited access to the internet would also be provided, allowing only access to specific websites such as news and Netflix.
In the agreement, parties suggested the installation of a monitoring program to keep an eye on the defendant’s activities. Furthermore, Bankman-Fried’s parents would have to sign a sworn affidavit whereby they would agree not to bring additional devices into the house or allow access to their password-protected devices. The final verdict is yet to be decided.
