FTX: Sam Bankman-Fried, is now banned from using messengers like Signal or Whatsapp

On Wednesday, U.S. District Judge Lewis Kaplan issued a temporary restraining order against FTX founder Sam Bankman-Fried, preventing him from communicating with current or former employees of the crypto-currency exchange or his hedge fund Alameda Research. Bankman-Fried has also been banned from using any kind of encrypted messaging tools such as Signal.

Sam Bankman-Fried banned from using applications and contacts

After the defendant communicated with a former co-worker using Signal a few weeks ago, federal prosecutors in New York have asked a court to impose new bail conditions on the 30-year-old man who faces fraud charges in the collapse of the FTX empire. The charges stem from the fact that the defendant is accused of causing the crypto-currency exchange to collapse, leading to a number of related business failures and a complete bloodbath in the crypto-currency market.

Additionally, on January 2, Sam Bankman-Fried emailed John J. Ray III, his replacement as FTX CEO, asking to meet in person. John Ray, who took over as CEO after Sam Bankman-Fried resigned, is currently focused on reorganizing the company while working to recover funds lost by the company’s depositors.

Sam Bankman-Fried attempts to falsify evidence?

Sam Bankman-Fried’s attorneys are objecting to the new bail conditions, saying their client’s Signal message to FTX’s U.S. general counsel on Jan. 15 was an innocent attempt to offer assistance in the ongoing bankruptcy process. However, the general counsel was also listed as a witness in the government’s court filings, and prosecutors have asserted that Sam Bankman-Fried may be trying to influence that person’s testimony in the case. Although Ryne Miller’s identity as FTX’s U.S. counsel was not disclosed in court documents, he continued to serve in that capacity after the company filed for bankruptcy in November.

With respect to SBF’s message to Ryne, the text would have read:

I’would really like to reconnect and see if there is a way for us to have a constructive relationship, to use each other as resources when possible, or at least to go over things with each other.

On Wednesday, U.S. District Judge Lewis Kaplan agreed to hold a hearing on Feb. 7, but in the meantime, he imposed the restrictions outlined by the government. As part of the $250 million bail agreement, Bankman-Fried currently resides at his parents’ home in Palo Alto, Calif. On January 3, he pleaded not guilty to the charges against him.