Sam Bankman-Fried, Founder of FTX, Seeks to Remove Bail Restrictions on Crypto Asset Transfers

Sam Bankman-Fried, Founder of FTX, Seeks to Remove Bail Restrictions on Crypto Asset Transfers

According to a letter from Mark Cohen, his attorney, Sam Bankman-Fried is seeking access crypto assets that are associated with FTX or Alameda Research. Cohen insists that any bail conditions “related crypto asset transfers” should be lifted.

The Legal Team of Bankman-Fried Argues to Remove 2 Bail Conditions

The following is a Let me know Lewis Kaplan (Southern District of New York) judge. Sam Bankman Fried’s attorney Mark Cohen explains to him that Bankman-Fried’s bail conditions at the moment are unjust and should be lifted. Bankman-Fried was Indicted Manhattan federal grand jury and is facing eight charges including wire fraud and conspiracy to commit commodities fraud. He also faces conspiracy to steal securities fraud. Money laundering and conspiracy to defraud Federal Election Commission.

Bankman-Fried was granted bail by Judge Kaplan, the court’s former CEO of FTX. The defendant was remanded to California’s parents with a government-monitored ankle brace. Cohen, a white-shoe lawyer, who represented Ghislaine Maxill in her recent case regarding sex trafficking, asks that Bankman-Fried’s bail conditions be amended to allow for “two additional” items. First, Bankman-Fried cannot speak with Caroline Ellison or Gary Wang.

Cohen emphasizes that the bail conditions are “overbroad” because Bankman-Fried intends to contact these people to offer assistance in FTX bankruptcy. Cohen provides an example by stating that Bankman-Fried cannot speak to his therapist (an ex-FTX employee) without his lawyers.

Although the government raised concerns about Bankman-Fried using Signal and other ephemeral messages applications, Bankman-Fried’s legal team said that these concerns were unfounded. Cohen wrote to Judge Kaplan, stating that “the government’s proposed bail conditions regarding ephemeral message applications should not be imposed.”

SBF Wants Access to Crypto Assets Linked To FTX And Alameda Research

Bankman-Fried also seeks access rights to certain crypto assets that are associated with FTX or the quantitative trading firm Alameda Research. “[Bankman-Fried is] The bail conditions note states that it is prohibited to access or transfer any FTX assets or cryptocurrency of Alameda or FTX, or assets or cryptocurrency bought with funds from FTX and Alameda.

The legal team representing Bankman-Fried is asking the judge to remove the bail condition. They believe the conditions are not justified. Cohen explained in his letter that the government’s justification was bolstered due to recent transfers of FTX-linked funds and Alameda. Bankman-Fried “repeatedly denied any involvement” in the transfer and he contacted government when he saw the funds moving. Prosecutors stated that they are still investigating who was responsible for crypto transfers at a pretrial conference held on January 3, 2023.

Cohen states that Cohen concluded that it has been three weeks since the conference and that the legal team believes the government’s investigation has proved “that he didn’t access and transfer these assets”. If Bankman-Fried is found not to have transacted with the cited crypto assets then the “existing bail condition” related to crypto asset transfers should be lifted. The lawyers for Bankman-Fried summarised the letter by stressing that, given that the “sole basis” for seeking this condition was not supported, Bankman-Fried’s litigation firm believes that the “bail conditions” imposed at the conference must be lifted.

What did you think of Sam Bankman-Fried’s request for his bail conditions to be changed? Please share your views on this topic in the comments below.

By David Warsh

David Warsh is a leading expert in the field of cryptocurrency and blockchain technology. With over a decade of experience in the industry, he has a deep understanding of the intricacies of digital currencies and the potential they hold for revolutionizing various industries.