After a tumultuous month for disgraced FTX boss Sam Bankman-Fried (SBF), prosecutors have finally given ground.
January was difficult for SBF. Despite being sat in home arrest in California, on a $250m bond, last week US District Judge Lewis Kaplan imposed severe restrictions on his communications.
The result of requests from prosecuting lawyers that feared Bankman-Fried would influence witnesses. These concerns aimed at Signal – an app that uses high-level encryption for messages.
But today it appears that prosecutors have overturned the communications restriction.
The FTX bankruptcy saga continues following a new deal cut by SBF’s defense team.
Lead defense lawyer Mark Cohen attested to the move, arguing it was essential in clarifying the blurred lines surrounding the blanket comms ban.
The new arrangement will enable SBF continued communication as long as he complies with a non-contact order – a list of individuals he’s barred from contacting.
This will still give him the ability to have contact with current and former FTX employees. But will also reopen his communication channels with family and friends.
Further, Cohen also forced prosecutors to exempt some names from the non-contact order. These names are unidentified.
But this deal wasn’t free. Pressing prosecutors to reopen his communication channels has come at a cost. And the fallen industry star boy has accepted much tighter bail conditions in other areas.
What new conditions has Sam Bankman-Fried agreed?
Following the announcement of a communications ban on SBF, negotiations between the defense team, under the steady guidance of Mark Cohen, and the prosecutors, led by Franklyn Williams KC, started immediately.
In any successful negotiation, to get what you want you have to offer areas of compromise. SBF’s negotiation was no different.
First of all, Cohen offered up a highly-sought restriction against the former CEO. SBF has agreed to be completely banned from engaging in cryptocurrency.
This extends to not accessing crypto assets, and not engaging in any cryptocurrency transactions.
But further than that, Cohen has also agreed to restrict SBF’s personal finances until the October trial.
This agreement restricts his ability to enter into transactions above $1,000. Except to pay Cohen’s legal fee.
Many will be surprised this arrangement wasn’t already in place after investigators seized $700m in assets from the crypto boss.
A small win for SBF for sure, but for how long? Only October will tell.
The FTX saga continues.
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