FTX founder Sam Bankman-Fried’s use of the internet while on bail has become a concern for US Federal Judge Lewis A. Kaplan. The judge has expressed growing impatience over Bankman-Fried’s communications on electronic devices that cannot be traced. Kaplan said that putting Bankman-Fried in jail might be the best way to stop him from communicating in ways that trick the government.
Bail Conditions for Bankman-Fried
Kaplan has not immediately changed Bankman-Fried’s $250 million bail package, which allows him to live with his parents in Palo Alto, California, while preparing for trial on charges of cheating investors and looting customer deposits at FTX. However, the judge raised the possibility that jail might be the only way to ensure Bankman-Fried won’t outfox the government with ways to use electronic devices in ways that can’t be tracked.
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Prosecutors’ Concerns and Proposed Solutions
According to prosecutors, Bankman-Fried sent an encrypted message over the Signal texting app on Jan. 15 to the general counsel of FTX US, indicating that he may be trying to influence a witness with incriminating evidence against him. As a result, prosecutors have asked the judge to limit Bankman-Fried’s use of electronic devices and the internet, including banning him from messaging applications and requiring the installation of a device monitoring program on his cellphone and computer.
Bankman-Fried’s Lawyer Response
Bankman-Fried’s lawyer, Mark Cohen, called the prosecutors’ proposals “draconian.” However, he soon found himself on the defensive as Kaplan noted his client’s apparent bail violations, including accessing an encrypted internet site to watch the Super Bowl.
Judge’s Concerns
Kaplan expressed concerns about Bankman-Fried’s apparent bail violations and the possibility that he may have attempted to commit a federal felony while on release. The judge noted that there may be many devices in Bankman-Fried’s family home that the government will not be tracking, even with any new rules imposed on his bail conditions. Kaplan asked prosecutors, “Why am I being asked to set him loose in this garden of electronic devices?”
