Disgraced Crypto Executive Sam Bankman-Fried Attempts to Contact Witnesses in Criminal Case
Recent attempts by disgraced crypto executive Sam Bankman-Fried to contact prospective witnesses in his criminal case have prompted federal prosecutors to seek new conditions of his release. Bankman-Fried, the founder of the now-defunct crypto platform FTX, has been charged with fraud and conspiracy and is currently free on a $250 million bond.
In a letter to the judge on Friday, prosecutors requested that the conditions of Bankman-Fried's bond be modified to prohibit him from contacting or communicating with current or former FTX or Alameda employees, as well as to ban the use of any encrypted messaging apps.
Assistant United States Attorney Danielle Sassoon cited the nature of the case and Bankman-Fried's recent attempts to contact potential witnesses as justification for the new conditions. She stated, “It has recently come to the Government’s attention that the defendant has been in direct communication with the current General Counsel of FTX US who may be a witness at trial, and who is represented by counsel.”
The communication in question was made through the encrypted messaging app Signal and included an email that proposed an alliance and suggested an effort to influence the general counsel's potential testimony. Prosecutors are concerned that this message, as well as Bankman-Fried's contact with other current and former FTX employees, may be an attempt to influence testimony and potentially tamper with evidence.
This development adds to the already-troubled legal situation for Bankman-Fried, who pleaded not guilty in a Manhattan federal court in January of this year. The collapse of FTX in November 2022 has been a major blow to the crypto industry, with many investors losing significant amounts of money.
As the legal proceedings continue, it will be important to keep a close eye on the actions of Bankman-Fried and any potential attempts to influence the outcome of the case. With a trial looming and a significant bond at stake, it is likely that the prosecution will take a hard line in ensuring a fair and just outcome.