Arab Press

بالشعب و للشعب
Sunday, Apr 12, 2026

FTX collapse: Bankman-Fried may get flip phone under tougher restrictions

FTX collapse: Bankman-Fried may get flip phone under tougher restrictions

FTX founder's proposed bail conditions under review by judge overseeing case

FTX founder Sam Bankman-Fried could be permitted to have a flip-phone for calls and texts only, under a proposal submitted to a judge deciding on bail conditions for the former crypto titan.

Bankman-Fried faces more than a lifetime in prison if convicted on allegations of defrauding investors, wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering.

According to the allegations, the Bankman-Fried diverted customer funds from the start of his cryptocurrency exchange to support his hedge fund, Alameda Research, and used his fraudulent practices to fund a lavish lifestyle while buying real estate, making venture investments and funding Democratic causes.

The FTX founder was released after posting $250 million bond in December and was ordered to live in his parent’s home in Palo Alto, California.

In February, Bankman-Fried received additional charges including conspiring to operate an unlicensed money transmitting business and conspiring to make unlawful political contributions while defrauding the Securities and Exchange Commission, or SEC.

FTX CEO Sam Bankman-Fried attends a press conference at the FTX Arena in downtown Miami on June 4, 2021.


Judge Lewis Kaplan, who is overseeing the case, has questioned the prosecution on why they did not pursue having Bankman-Fried behind bars as he awaits trial.

Prosecutors previously raised concerns that Bankman-Fried could use virtual private networks (VPNs) or encrypted messaging apps to tamper with witnesses.

In a letter to the judge, prosecutors and Bankman-Fried’s attorneys proposed modifications to the defendant’s bail conditions.

Particularly, the letter proposes that Bankman-Fried not be permitted to contact or communicate with former employees of FTX or Alameda, except when counsel is present or if an exemption is granted by the government or court.

BRAZIL - 2022/06/20: In this photo illustration, the stock trading graph of FTX Token (FTT) seen on a smartphone screen.


The attorneys proposed the defendant be prohibited from using encrypted or ephemeral call or messaging applications, including "Signal," and from using VPN, except as allowed under his bail conditions.

The proposal also confines Bankman-Fried to the use of a flip phone or non-smartphone that does not have internet capabilities or has internet capabilities disabled. The serial number, IMEI number and several other phone-identifying keys are required to be provided to the courts, and Bankman-Fried would only be permitted to use the phone for text messages and calls.

Bankman-Fried would also be allowed to have a new computer but with limited functionalities, and like the phone, the serial number and other device-identifying keys would have to be provided to the courts.

Some of the software permitted on the computer include Zoom, Microsoft Office, Adobe Acrobat, and Python, which would allow Bankman-Fried to read the FTX codebase.

The computer is required to have monitoring and security software that logs Bankman-Fried’s activity and stores it to a cloud-based repository.

Judge Lewis A. Kaplan, who is overseeing the case, has suggested that Bankman-Fried may need to be jailed if his communications cannot be monitored, according to the Associated Press, and he has not decided whether to approve the proposal.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Strategic Saudi-Bahrain Causeway Closed Amid Security Concerns as Trump Deadline Approaches
Saudi Arabia Keeps Red Sea Oil Exports Flowing Despite Regional Tensions
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
Saudi Business Leader Abudawood Appointed Chairman of Merit Incentives Group
TotalEnergies Confirms Damage at Saudi Refinery Following Security Incident
Saudi Arabia Launches Early Construction Phase for King Salman Stadium Project
Saudi Shift Away from Longstanding Dollar Oil Framework Gains Attention Amid Iran Conflict
Türkiye and Saudi Arabia Resolve Long-Running Transit Visa Dispute
Saudi Oil Capacity and Pipeline Flows Reduced as Supply Risks Intensify
TotalEnergies Reports Damage to Saudi SATORP Refinery Following Security Incidents
Gulf States Assess Prospects of U.S.-Iran Truce as Regional Stability Efforts Intensify
South Korea Resumes Honey Exports to Saudi Arabia Following Sanitary Approval
Saudi Arabia Carries Out Sentences in Eastern Province Following Security Convictions
Saudi Sovereign Wealth Fund Backs King Street’s Regional Credit Strategy
Saudi Arabia Secures World Cup Return as Egypt Celebrates Landmark Qualification
Iran and Saudi Arabia Intensify Diplomatic Engagement Amid Regional Tensions
Russia and Saudi Arabia Open Visa-Free Travel Corridor for Citizens
Saudi Oil Output Capacity Reduced by 600,000 Barrels Per Day Amid Regional Conflict
Saudi Arabia Suspends Operations at Select Energy Sites as Precautionary Measure
Saudi Arabia Halts Operations at Multiple Energy Facilities Amid Heightened Tensions
Global Markets Jolt as Iran Signals Ceasefire Breakdown and Rising Regional Tensions
King Street Aligns with Saudi Sovereign Wealth Fund to Expand Alternative Investments in Middle East
Attack on Saudi Arabia’s Jubail Petrochemical Hub Raises Global Supply Concerns
Debate Emerges Over Saudi Strategic Decisions as Gulf Cooperation Council Dynamics Come Into Focus
Saudi Arabia Expands Full Workforce Localisation to 69 Professions in Major Labour Reform
Emerging Alliance of Pakistan, Turkey, Egypt and Saudi Arabia Signals New Regional Power Dynamic Amid Iran Conflict
Iran Linked to Strikes Across Gulf States Following Refinery Attack Escalation
Saudi Arabia Voices Concern Over Fragile US–Iran Ceasefire Stability
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
Saudi Arabia’s Key East-West Oil Pipeline Targeted Following Ceasefire Announcement
Iran Targets Saudi Arabia’s East-West Oil Pipeline in Escalating Regional Tensions
Trump Warns of Civilizational Stakes as Iran Halts Negotiations
Saudi Companies Expand Remote Work Measures Ahead of Iran-Related Security Concerns
Iran Warns of Strikes on Saudi Energy Infrastructure if US Targets Its Facilities
Iran Urges Civilians to Form Human Shields Around Nuclear Sites as Diplomatic Deadline Approaches
Saudi Arabia Raises Oil Prices to Record Premiums Amid Supply Pressures Linked to Iran Conflict
Key Saudi-Bahrain Causeway Closed Amid Heightened Security Concerns Linked to Iran
Formula One Calendar Gap Explained as Fans Await Next Grand Prix
Growing Strain on the Petrodollar System Comes Into Focus Amid Iran Conflict
Reported Strike on Saudi Arabia’s Jubail Complex Raises Global Energy Supply Concerns
FedEx Introduces New Digital Tool to Streamline Imports into Saudi Arabia
Iran Claims Strike on Saudi Arabia’s Jubail Petrochemical Complex Amid Rising Regional Tensions
Taiwan to Source Oil Shipments from Saudi Arabia’s Red Sea Ports
Saudi Arabia Evacuates Riyadh Financial District as Precaution Amid Regional Tensions
Saudi Arabia Balances Ambitious Economic Vision Amid Regional Tensions and Financial Pressures
Budget Saudi Arabia Reports Strong Full-Year 2025 Financial Performance
Saudi Arabia Expands Investment in Capcom With Stake Reaching Six Percent
Saudi Arabia Assesses Significant Economic Impact From Regional Conflict Involving Iran
US Beef Secures Expanded Market Access in Saudi Arabia
Jordan and Saudi Arabia Declare Absolute Solidarity in Response to Iranian Threats
×