Sam Bankman-Fried, the founder of FTX, has been ordered to use an old flip phone without internet connectivity while he awaits trial for eight charges related to fraud and financial schemes. The phone is monitored with tracking software, and Bankman-Fried is also limited in his use of a laptop, which can only access specific websites and services deemed non-threatening by prosecutors. These measures were implemented after Bankman-Fried was accused of using encrypted messaging app Signal and a virtual private network to communicate with former employees.
On December 22, 2022, a judge in New York approved Bankman-Fried’s record-breaking $250 million bail package, which includes electronic monitoring, surrendering his passport, and house arrest at his parents’ home in Palo Alto, California. Bankman-Fried’s parents are also required to provide serial numbers and MAC addresses of all electronic devices in the house, as well as install monitoring software capable of taking photos and videos of users.
FTX, which Bankman-Fried founded in 2019, became the world’s third-largest cryptocurrency exchange by trading volume, with over one million users by July 2021. FTX was valued at $32 billion and was considered a formidable competitor to Binance. However, in November 2022, FTX collapsed as users withdrew funds following revelations of non-transparent operations.
Bankman-Fried faces the possibility of life imprisonment if found guilty of the charges against him. However, his sentence may be reduced if he cooperates with investigators or pleads guilty.
The measures imposed on Bankman-Fried highlight the seriousness of the charges against him and the potential consequences of financial wrongdoing. While Bankman-Fried was a prominent figure in the cryptocurrency industry, the collapse of FTX and the charges against him serve as a reminder that no one is above the law.
Read more:
- FTX Co-Founder Sam Bankman-Fried Faces Additional 40 Years In Prison With New Criminal Charges
- FTX Debtors’ Total Assets Updated To $6.1 Billion After Discovering Significant Shortfall In Digital Asset Wallets
- US Department Of Justice Proposes New Bail Conditions For Former FTX CEO Sam Bankman-Fried