• Sam Bankman-Fried, the former CEO of bankrupt crypto exchange FTX, is facing scrutiny from a federal judge over his use of electronic devices while out on bail.
• Prosecutors have asked Judge Lewis Kaplan to limit Bankman-Fried’s use of electronic devices and the internet as he has already violated his bail conditions in the past.
• Mark Cohen, Bankman-Fried’s lawyer, argued for leniency and noted that jail time would make it harder for SBF to work on his defense.
Federal Judge Mulls Jail Time for Former FTX CEO
A federal judge is considering sending Sam Bankman-Fried, the man behind the bankrupt crypto exchange FTX, to jail over his undue internet usage while out on bail. Judge Lewis Kaplan of the District Court for the Southern District of New York raised the possibility of incarceration as a way to ensure that SBF does not use electronic devices to outsmart the government.
SBF Violated Terms of Bail
Bankman-Fried got in trouble last month after he contacted several ex-employees of FTX using encrypted messaging applications, including Signal. Federal prosecutors believe there may be „probable cause“ to believe that SBF committed or attempted to commit a federal felony and asked Judge Kaplan to limit his access to electronic devices and social media platforms. The goal is to prevent further inappropriate conduct by SBF while awaiting trial.
Defense Argues Against Jail Time
Mark Cohen, Bankman-Fried’s lawyer, argued against jail time citing that it would hinder their ability to go through FTX’s financial records as part of their defense strategy. Cohen also noted that SBF understood what was at stake and was literally on trial for his life.
Judge Weighs Options
Judge Kaplan is currently weighing all options before him with regard to sentencing Bankman-Fried for violating his bail terms. While one option could be revoking bail altogether and sending him straight to jail, another could be further tightening restrictions placed upon SBF before allowing him back into society under certain conditions until trial day arrives.
With both sides making their arguments clear in court proceedings this week, it remains unclear how Judge Kaplan will rule in this case when it comes time for sentencing.