U.S. Department of Justice asks ex-FTX Sam to ban online contact with witnesses


Request to ban the use of messenger apps

The U.S. Department of Justice has asked a federal district judge to ban Sam Bankman-Fried, former CEO of cryptocurrency exchange FTX, from contacting employees. It is said that there is a possibility that it will lead to the crime of bribery of witnesses.

Defendant Bankman-Fried sent the following message to Mr. Leann Miller, a corporate lawyer of FTX US, on January 15th via the messenger app “Signal”. She is believed to have lobbied him to speak favorably at future witness cross-examinations.

I want to see if there is a way to get back together and build a constructive relationship. We want to use each other as resources if possible, or at least scrutinize each other.

Prosecutors are seeking changes to the terms of Bankman-Fried’s bail, according to a document filed by federal prosecutors with a federal district judge. Bankman-Fried is also believed to have been in contact with “other current and former FTX employees” and is being asked to ban all communication apps, including the messenger app Signal.

Bankman-Fried was released on Dec. 22, 2022, after signing bail of approximately 33 billion yen ($250 million), but the current bail condition is that the defendant must have contact with witnesses in the case. There are no restrictions on what you can do.

Relation:Former FTX CEO Sam released on $300 million bail

Prosecutors also cited testimony from former Alameda Research CEO Caroline Ellison, who signed a plea bargain in December. Bankman-Fried said he was familiar with Signal and another messenger app, Slack, and instructed employees to set up automatic deletion of messages.

Relation:Former Alameda CEO Ellison and others plead guilty

Fund transfer of 5.8 billion yen

Prosecutors also said Miller was able to view the communication channel through which Bankman-Fried directed the transfer of $45 million from sister company Alameda Research to fill the hole in FTX US’s balance sheet. pointed out. “A defendant’s efforts to improve relations with witnesses who may testify against him may themselves constitute witness misrepresentation,” it argued.

FTX filed for bankruptcy under Chapter 11 (Chapter 11) of the U.S. Bankruptcy Code on November 11, but since then Bankman-Fried defendant has stated that the U.S. version of “FTXUS is fully solvent.” I have,” he emphasized.

Citing a Jan. 12 blog post, Bankman-Fried argued that “it’s ridiculous that FTX US users haven’t fully recovered yet and gotten their money back,” prosecutors said. “has not publicly disclosed that it has moved Alameda’s funds to fill an apparent hole in FTX.US’s balance sheet,” it said.

Relation:FTX CEO Sam Apologizes for ‘Big Mistake’

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