“Reasonable concern” that Sam Bankman-Fried, the founder of the crypto exchange that crashed FTX, after raising billions, tried to dissuade witnesses from testifying against him – so said a judge in the court as part of Bankman-Fried’s trial.
The judge also said that Bankman-Fried committed additional illegal actions that could lead to the cancellation of his bail and his return to prison, the American media reports. Judge Louis Kaplan said this at a hearing held in New York and emphasized that this could result in Bankman-Fried’s bail being revoked and his arrest.
The plaintiffs asked the judge to limit Bankman-Fried’s use of cell phones, computers and the Internet. The plaintiffs claim that Bankman-Fried found loopholes and is violating the restrictions of the release on bail, including contacting the witnesses. Two weeks ago, the prosecutors claimed that Bankman-Fried contacted former FTX employees who are potential witnesses in the trial, even though the court expressly prohibited this.
The plaintiffs demand that Bankman-Fried not use the Internet at all. They claim he used a VPN to hide his online activities. Bankman-Fried’s lawyers argued that he only used it to watch the Super Bowl through a subscription he purchased while living in the Bahamas. But even the judge understands that it is not possible to limit the use of the Internet.
Judge Kaplan said that it is naive to think that limiting Bankman-Fried’s access to the Internet or monitoring his electronic devices will really prevent him from using the Internet. The judge also pointed out that Bankman-Fried’s parents, with whom he lives, also have laptops and cell phones. The prosecutor, attorney Nicholas Ross, said in response: “Then, I don’t know if there is a good solution”, and the judge responded with a thick hint – “There is a solution, but no one has yet proposed it”.
Mark Cohen, Bankman-Fried’s lawyer, asked the judge to keep a soft hand – “Bankman-Fried, my client, understands what is being discussed here. He is on trial for his life, for all that it implies.”
In the meantime, Judge Kaplan decided to give the parties until Tuesday to find a solution. Let’s recall that Sam Bankman-Fried’s FTX exchange was considered one of the five largest crypto exchanges in the world. In the past, the 30-year-old Jewish guy was seen as a “knight on the white horse” who came to the aid of crypto platforms that ran into problems. But his stock exchange itself ran into a serious liquidity problem due to a type of “run to the banks” in which many customers need their money at once and the stock exchange does not have the means to pay them. At first it was a financial failure, but it quickly became clear that it was some kind of big fraud pyramid. The investors in the exchange’s currencies did not receive the money, it disappeared. It was transferred, among other things, to Bankman-Fried’s accounts.
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