FTX Co-Founder Sam Bankman-Fried Seeks Removal of Bail Restrictions on Crypto Asset Transfers

Sam Bankman-Fried, the disgraced co-founder of FTX, is seeking entree to crypto assets associated with FTX and Alameda Research, according to a missive written by his attorney, Mark Cohen. Cohen insists that the existing bail conditions “related to crypto plus transfers should beryllium removed.”

Bankman-Fried’s Legal Team Argues for Removal of 2 Bail Conditions

In a letter to the Southern District of New York (SDNY) justice Lewis Kaplan, Sam Bankman-Fried’s attorney, Mark Cohen, explains that his squad believes Bankman-Fried’s existent bail conditions are unfair and should beryllium removed. Bankman-Fried was indicted by a national expansive assemblage successful Manhattan and faces 8 charges, including ligament fraud, conspiracy to perpetrate commodities fraud, conspiracy to perpetrate securities fraud, wealth laundering, conspiracy to defraud the Federal Election Commission, and run concern violations.

The erstwhile FTX CEO was released connected bail and the court’s Judge Kaplan imposed definite bail restrictions connected Bankman-Fried. For instance, the suspect has been remanded to his parents’ home successful California with a government-monitored ankle bracelet. Cohen, a white-shoe lawyer who represented Ghislaine Maxwell during her caller enactment trafficking case, requests that “two additions” beryllium removed from Bankman-Fried’s bail conditions. The archetypal is that Bankman-Fried is presently prohibited from speaking with Caroline Ellison, Gary Wang, Nishad Singh, 2 redacted witnesses, and George Lerner (Bankman-Fried’s therapist).

Cohen stresses that the bail information is “overbroad” and Bankman-Fried’s intentions to interaction these individuals are attempts to “offer assistance successful FTX’s bankruptcy process.” The lawyer notes that this benignant of connection “does not bespeak misconduct.” Cohen gives an example, detailing that the government’s bail information means that “Bankman-Fried could not talk to his therapist, who is simply a erstwhile FTX employee, without the information of his lawyers.”

While the authorities has raised concerns implicit Bankman-Fried’s usage of Signal and “other ephemeral messaging applications,” Bankman-Fried’s ineligible squad opines that the concerns are unwarranted. “The government’s projected bail information regarding ephemeral messaging applications should not beryllium imposed,” Cohen’s missive to Judge Kaplan details.

SBF Seeks Access to Crypto Assets Linked to FTX and Alameda Research

Additionally, Bankman-Fried is seeking rights to entree circumstantial crypto assets associated with FTX and the quantitative trading steadfast Alameda Research. “[Bankman-Fried is] prohibited from accessing oregon transferring immoderate FTX oregon Alameda assets oregon cryptocurrency, including assets oregon cryptocurrency purchased with funds from FTX oregon Alameda,” the bail conditions note.

Bankman-Fried’s ineligible practice is urging the justice to driblet the bail condition, arsenic the squad believes the conditions are unjustified. The government’s justification was bolstered by the caller transfers of FTX and Alameda-linked funds, Cohen elaborate successful the letter. However, Bankman-Fried has “repeatedly denied immoderate engagement successful the transfers” and helium contacted the authorities arsenic soon arsenic helium noticed the funds move. At a pretrial league connected January 3, 2023, prosecutors said they were inactive “investigating” who was liable for the crypto transfers.

Cohen concludes that it’s been 3 weeks since the conference, and the ineligible squad assumes the government’s probe has proven “that helium did not entree and transportation these assets.” If investigators person figured retired that Bankman-Fried did not transact with the cited crypto assets, past “existing bail information related to crypto plus transfers” should cease. Bankman-Fried’s lawyers sum up the missive by stressing that fixed the “sole ground precocious for seeking that information has not been supported,” Bankman-Fried’s litigation steadfast wholeheartedly believes that the “bail information imposed astatine the league should beryllium removed.”

What bash you deliberation astir Sam Bankman-Fried’s petition to person his bail conditions changed? Share your thoughts astir this taxable successful the comments conception below.

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