Sam Bankman-Fried, the disgraced FTX founder, is looking for access to crypto resources linked to the exchange Alameda Research. According to a letter he received from his lawyer Mark Cohen, the current bail provisions related to crypto asset transfers should be revoked.
Bankman-Fried’s Legal Team Requests Revocation of Two Bail Conditions
In a letter sent to SDNY Judge Lewis Kaplan, Sam Bankman-Fried’s lawyer Mark Cohen expresses his conviction in his case. Bankman-Fried is facing eight indictments, including conspiracy to commit wire fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission. The former FTX CEO was taken into custody and brought to court, where Judge Kaplan imposed certain bail restrictions on him.
For instance, the defendant was sent to his parents’ home in California with a government-controlled ankle bracelet. White-shoe lawyer Cohen, who represented Ghislaine Maxwell in her recent sex trafficking case, argued that two addenda to Bankman-Fried’s bail conditions should be removed. First, Bankman-Fried is currently forbidden from contacting Caroline Ellison, Gary Wang, Nishad Singh, two redacted witnesses, and George Lerner (Bankman-Fried’s therapist).
Cohen emphasizes that bail is a matter of public safety and that the conditions are too broad. He argues that Bankman-Fried should be able to contact these individuals if he has the intention to “offer assistance in FTX’s bankruptcy proceedings.” Any such communication should be reviewed by a lawyer to ensure that it does not reflect misconduct.
As an example, Cohen points to the fact that Bankman-Fried should not be allowed to speak to his therapist, who is a former FTX employee, without the involvement of his lawyers. While the government raised concerns about Bankman-Fried’s use of Signal and “other ephemeral messaging applications,” Bankman-Fried’s legal team feels that the issues are unjustified. They argue that the government’s proposed bail condition should not be imposed with respect to ephemeral messaging applications.
SBF Seeks Access To Crypto Assets Linked To FTX Alameda Research
Additionally, Bankman-Fried is looking for the right to enter certain crypto assets connected to FTX, a quantitative trading firm Alameda Research. “[Bankman-Fried is] prohibited from accessing or transferring FTX or Alameda assets or cryptocurrencies, including assets or cryptocurrencies purchased with FTX or Alameda funds,” the bond conditions state.
Bankman-Fried’s legal representation is pushing for the removal of bail because they believe the terms are not warranted. The recent transfers of money associated with FTX helped the government justify their actions. In the letter sent to Judge Kaplan, Cohen has outlined all the details. However, Bankman-Fried has “repeatedly denied any involvement in the transfers” and the government was informed immediately when the funds started moving. At the pre-trial conference on January 3, 2023, prosecutors said they were still “investigating” who was responsible for the cryptocurrency transfers.
Cohen concludes that three weeks have passed since the conference and Bankman-Fried’s legal team assumes the government investigation is complete and “that he did not access or transfer these assets.” If investigators discovered that Bankman-Fried did not transact the mentioned crypto assets, the “existing surety condition related to crypto asset transfers” should be discontinued. Bankman-Fried’s attorneys sum up the letter by emphasizing that the letter is based on the “sole basis presented for seeking that condition has not been supported,” and Bankman-Fried’s litigation team strongly believes that the “bail condition imposed at the conference should be removed.”
What do you think of Sam Bankman-Fried’s request to alter the bail conditions? Please share your thoughts on the matter in the comments section below.
