Posted on 29. Januar 2023 in Allgemein
• Sam Bankman-Fried, co-founder of FTX, is seeking the removal of bail restrictions on crypto asset transfers that have been imposed by Judge Lewis Kaplan.
• Bankman-Fried’s attorney, Mark Cohen, argues that the existing bail conditions are unfair and should be removed.
• Cohen requests that the court remove two additions to Bankman-Fried’s bail conditions that prohibit him from speaking with certain individuals.
Sam Bankman-Fried, the disgraced co-founder of FTX, is seeking the removal of bail restrictions on crypto asset transfers that have been imposed by Judge Lewis Kaplan. Bankman-Fried was indicted by a federal grand jury in Manhattan and faces eight charges, including wire fraud, commodities fraud, securities fraud, money laundering, and campaign finance violations. He was released on bail, with certain conditions attached that limit his access to crypto assets.
Bankman-Fried’s attorney, Mark Cohen, has argued that the existing bail conditions are unfair and should be removed. In a letter to the Southern District of New York (SDNY) judge Lewis Kaplan, Cohen requested that “two additions” be removed from Bankman-Fried’s bail conditions. The first addition prohibits Bankman-Fried from speaking with Caroline Ellison, Gary Wang, Nishad Singh, two redacted witnesses, and George Lerner (Bankman-Fried’s therapist). Cohen insists that the bail condition is “overbroad” and that Bankman-Fried’s intentions to contact these individuals are attempts to offer assistance in FTX’s bankruptcy process.
The second addition to Bankman-Fried’s bail conditions that Cohen requests be removed is the restriction on Bankman-Fried’s access to crypto assets associated with FTX and Alameda Research. Cohen argues that Bankman-Fried needs access to these assets in order to assist in the bankruptcy proceedings of FTX, and that the restriction is unnecessary. He also claims that the restriction does not prevent Bankman-Fried from committing further violations, as Bankman-Fried is not in a position to do so.
It remains to be seen whether Judge Kaplan will agree to Cohen’s request and remove the bail restrictions on Bankman-Fried’s crypto asset transfers. If the Judge does agree, it could have a significant impact on the ongoing bankruptcy proceedings of FTX, as well as Bankman-Fried’s ability to assist in those proceedings.