Sam Bankman-Fried, the founder of FTX, has been allowed to use a flip phone with no internet connectivity as a part of his release conditions modification, as reported first by Insider.
This decision was made after prosecutors accused him of using the encrypted messaging app Signal to communicate with former employees, violating his bail conditions.
To address these concerns, prosecutors outlined the modifications to Bankman-Fried's release conditions in a letter to US District Judge Lewis Kaplan, allowing him only text messages and voice calls.
NEW YORK, NEW YORK - DECEMBER 22: FTX founder Sam Bankman-Fried leaves Manhattan Federal Court after his arraignment and bail hearings on December 22, 2022 in New York City. Bankman-Fried, who was indicted on December 9th and arrested 3 days later by Bahamas law enforcement at the request of U.S. prosecutors, consented to extradition to the U.S. where he is facing eight criminal counts of fraud, conspiracy and money-laundering offenses which includes making illegal political contributions.
Insider Trading Allegation
Bankman-Fried's reported use of Signal and virtual private networks (VPNs) had angered the judge, who had threatened to revoke his bail ahead of his trial in October for the collapse of his cryptocurrency exchange.
The former billionaire has been accused of insider trading. While the case is ongoing, prosecutors have granted Bankman-Fried limited access to technology and the internet.
He is allowed to use a flip phone or non-smartphone without internet capabilities, as well as a laptop with restricted functionality. To access the internet, he must use a VPN that only allows access to approved websites such as Netflix, Doordash, and Uber Eats.
Bankman-Fried is also not permitted to communicate with current or former employees of FTX or Alameda.
Prosecutors have installed security software to monitor his online activity and have the right to conduct periodic checks. Bankman-Fried is currently under house arrest at his parents' residence, where he must wear an ankle monitoring device. He was released on a $250 million bond, which was sponsored by two individuals with ties to Stanford University.
Bankman-Fried has pleaded not guilty to the insider trading charges. While he awaits further legal proceedings, his access to technology and the internet will remain limited.
Bankman-Fried's Current Arrangement
The current arrangement is intended to ensure that he remains confined to his parents' house and does not pose a flight risk. The ankle monitoring device will alert authorities if he tries to leave the premises.
The strict conditions imposed by prosecutors have limited Bankman-Fried's access to the internet to only websites deemed safe by the prosecutors.
The approved websites are only to be used for two purposes: to prepare for his defense and for leisure activities such as streaming TV shows and ordering food delivery. Bankman-Fried's communication with the outside world is also limited, as he cannot speak to his former or current employees.
Related Article: FTX Founder Sam Bankman-Fried Borrowed $546 Million From Alameda to Purchase Robinhood Stocks - Court Documents
