Following his use of auto-deleting messaging app Signal and a VPN in the space of a month, prosecutors want the former FTX CEO restricted to Gmail, FaceTime and SMS texting.
Federal prosecutors are seeking to substantially toughen the terms of Sam Bankman-Fried's bail agreement, virtually banning him from using the internet.
The former FTX CEO is accused of draining $10 billion from FTX customers' accounts to shore up his troubled trading operation, Alameda Research.
Pointing out that in just the last month Bankman-Fried "has used at least two methods of encryption," the prosecution asked Federal District Judge Lewis Kaplan to drastically limit his use of cellphones, tablets, computers, and the internet, court filings revealed.
On Monday, the prosecution told Judge Kaplan that Bankman-Fried had used a virtual private network (VPN) that hides his internet activity. Bankman-Fried he said he used it to watch the Super Bowl.
Earlier, he had reached out to a potential — and frankly probable — witness via Signal, a messaging app that can be set to eliminate records of messages. Bankman-Fried reportedly told FTX US General Counsel Ryne Miller that they should rebuild "a constructive relationship… or at least vet things with each other."
Citing that behavior and his "technological sophistication," the prosecution told Judge Kaplan "the existing conditions leave too much room for circumvention of restrictions aimed at preventing inappropriate conduct, including contacting witnesses and accessing cryptocurrency assets."
Almost Cold Turkey
Remedies would include limiting Bankman-Fried to using electronic devices solely to read legal documents, making Zoom calls to his lawyers, using his Gmail account, and using a cell phone's voice and SMS messaging service.
To do this he would have "limited use" of one cell phone and computer with monitoring apps, have pen registers on his cell and Gmail account, and allow the search of those devices by probation officers if "reasonable suspicion" that a violation occurred exists.
Bankman-Fried's counsel said he should be able to make voice calls, FaceTime calls, and Zoom audio and video calls, as well as being allowed to use email, SMS text messaging and Twitter DM, having disabled any auto-delete functions. No other messaging platforms would be permitted.
