Arab Press

بالشعب و للشعب
Sunday, Jun 22, 2025

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
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Saudi Arabia Faces Uncertainty Over Succession After Mohammed bin Salman
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Majority of French Voters View Macron's Presidency as a Failure
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Businessman Mauled by Lion at Luxury Namibian Lodge
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
×