The move comes after a judge expressed displeasure about SBF’s use of encrypted-messaging apps and virtual private network services while on bail.
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The lawyer representing crypto entrepreneur Sam Bankman-Fried (SBF) in the ongoing FTX case will soon present a revised bail package to Judge Lewis Kaplan of the Southern District of New York. The move comes after Kaplan expressed displeasure about SBF’s use of encrypted-messaging apps and virtual private network (VPN) services while out on bail.
Legal proceedings around FTX’s downfall led SBF to avoid possible jail time with a $250 million bail bond. However, while on bond, the entrepreneur used Signal, an end-to-end encrypted messaging service, to contact former FTX and Alameda colleagues. Kaplan forbade SBF from using such apps and threatened to revoke bail privileges if he acted out of order.
Following up on this order, Bankman-Fried’s lawyer, Christian Everdell, revealed on March 18 that SBF and federal prosecutors “have been working diligently to agree on a set of specific bail conditions that will address the concerns expressed by the government and the court,” Bloomberg reported. In the letter, Everdell stated:
“We believe we are close to a resolution and anticipate being able to present the court with a proposed order outlining these conditions by next week.”
SBF maintains his innocence in claims relating to the misappropriation of FTX users’ funds. However, the entrepreneur could face 115 years of jail time if found guilty under the eight counts against him.
Related: FTX debtors report $11.6B in claims, $4.8B in assets, with many crypto holdings ‘undetermined’
During the ongoing restructuring of FTX, the current administrators revealed that FTX and Alameda Research’s former top brass received $3.2 billion in payments and loans from FTX-linked entities.
Sharing the FTX Debtors’ press release just issued: https://t.co/r7PlneGSXF
— FTX (@FTX_Official) March 16, 2023
Out of the lot, Bankman-Fried reportedly received the lion’s share of the funds at $2.2 billion.
As Cointelegraph reported, FTX’s management is investigating its rights to pursue potential action against the recipients and their subsequent transferees.
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Leading crypto entrepreneur Sam Bankman-Fried is looking to push a revised bail reform package that aims to end the costly, predatory and overwhelmingly negative effects of cash bail in the near future. The proposal is expected to be presented to the U.S. government next week. Bankman-Fried is a rival to social media giants like Facebook, and is the CEO of exchanges and protocol companies FTX, Alameda Research and Serum.
The cash bail system, which requires people to pay a specific amount in order to be released from jail before their trial, has been one of the most controversial topics in the justice system. While it often provides an opportunity for defendants to be released on their own recognizance, in practice, cash bail is often used to keep people locked away while they await their next court date. Moreover, it disproportionately affects people of lower socioeconomic class, as they may not be able to afford to pay the asked amount.
Bankman-Fried’s proposed solution looks to solve the problem of bail by providing a more equitable and fair system that offers alternatives to cash bail, such as non-monetary non-custodial release. Such measures would allow for criminal defendants to be released from prison on their own recognizance, which means that they do not have to pay money in order to remain free. Additionally, Bankman-Fried is also looking to develop a data-driven approach to bail reform, with the idea that data and analytics can help pinpoint more violations of the issue, and help provide better solutions.
Bankman-Fried has previously pushed back against Silicon Valley giants in their attempts to set up data exploitative solutions to criminal justice issues. With his new bail reform package, he hopes to finally create a fair and just alternative to cash bail, and put an end to the practice once and for all. The proposal is expected to be presented to the U.S. government next week.
