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A lawyer for former FTX CEO Sam Bankman-Fried (SBF) will present a revised bail package to Judge Lewis Kaplan of the Southern District of New York as early as next week. This comes after Kaplan complained about SBF’s use of encrypted messaging applications and virtual private network (VPN) services.
The former head of FTX had to abandon instant messengers and video games
The protracted litigation surrounding the collapse of FTX allowed Bankman-Fried to avoid a possible prison sentence by posting a $250 million bail. However, while on bail, the entrepreneur used the Signal end-to-end encrypted messenger to contact former FTX and Alameda colleagues. Kaplan banned SBF from using such applications (but allowed reading BeInCrypto) and threatened to revoke collateral privileges if the unfortunate CEO did not follow the rules.
Following the execution of this order, Bankman-Fried’s attorney, Christian Everdell, said that the SBF and federal prosecutors “worked diligently to agree on a set of specific bail conditions that would address the concerns expressed by the government and the court.”
“We believe we are close to resolving the issue and expect to be able to present a proposed ruling outlining these terms to the court by next week,” Everdell said in the letter.
The FTX case is still far from over
SBF maintains that it is innocent of claims related to embezzlement of crypto exchange users’ funds. However, the entrepreneur could face up to 115 years in prison if found guilty on eight counts.
The current restructuring revealed that former FTX and Alameda Research executives have received $3.2 billion in payments and loans from related entities. Bankman-Freed received the lion’s share of these funds – $ 2.2 billion. Another $587 million went to the accounts of former FTX chief engineer Nishad Singh. Alameda Research hedge fund manager Caroline Ellison received a modest $6 million.
Creditors of the bankrupt exchange spoke about this in a press release. The time frame of the transaction is not disclosed – however, as well as how long it will take to return money to the victims of the exchange,
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