FTX: Sam Bankman-Fried Reaches New Bail Agreement With Prosecutors

Lavina Daryanani
Source: Timesnext

Sam Bankman-Fried’s lawyers have been bargaining about the former FTX executive’s bail conditions for quite some time now. Last month, Bankman-Fried came to terms with federal prosecutors over his use of encrypted messaging applications and communications with his ex-employees. Right after, revised bail conditions were issued which barred the FTX founder from using phones and the internet.

A recent report from Reuters revealed that the parties have now come up with a new bail agreement. According to the proposed new conditions, Bankman-Fried will have a new phone with no internet capability. In fact, the phone’s communication functions will be restricted to text-only messages and voice calls. All other messaging applications will be prohibited.

Other agreement details

Additionally, Bankman-Fried has agreed to use a basic laptop with limited functions. The said device will have monitoring software to track user activity. That said, Bankman-Fried will not have administrative access. That will shut the doors for him to fidget and tamper with the restrictions. Going forward, if any breach speculation arises, Bankman-Fried will have to submit his devices for a search.

Furthermore, the FTX founder has been prohibited from using other electronic communication devices. Bankman-Fried’s parents have also agreed to restrict his access to their devices. They have reportedly signed “sworn affidavits” to not bring barred electronic devices home. Now that both the parties have concurred to the new set of terms and conditions, U.S. District Judge Lewis Kaplan will have to green-light the same before they are enforced.

The bankrupt FTX exchange, on the other hand, has been recovering assets to pay back clients. As reported recently, it reached a deal to recover more than $400 million from Modulo Capital. The hedge fund received about $475 million last year, as seed funding from Alameda Research before FTX collapsed. Specifically, the Bahamas-based hedge fund has agreed to pay $404 million in cash. Additionally, it has consented to give up its claim of $56 million in assets held in its accounts on FTX’s crypto exchange. Thus, the deal is worth $460 million in all.

Also Read: FTX to Recover $400+ Million From This Hedge Fund: Why?