Saying he “appears eager to circumvent surveillance” and may be “hiding online activities from the government,” prosecutors are seeking to renegotiate Sam Bankman-Fried’s bail agreement and impose tighter restrictions on the FTX founder.
At a hearing on the matter scheduled for Thursday, the government was expected to argue that Bankman-Fried’s use of the technology should be restricted after he used an encrypted chat program to contact a potential witness and used a VPN, or “virtual private network.”
A representative for Bankman-Fried declined to comment. In court filings, attorneys for the FTX founder said he used a VPN to watch the Super Bowl and other NFL games.
Court documents unsealed Wednesday revealed that Bankman Fred’s bail was backed by two Stanford academics.
Stanford Law School Honorary Dean Larry Kramer signs a bond promising to pay $500,000 if Bankman-Fried violates the terms of his release, senior research fellow at Stanford University Andreas Baebke He signed a bond for $200,000.
The disclosure of the academics’ names adds to the public relations between the embattled cryptocurrency mogul, under a federal indictment on fraud and money laundering charges, and Palo Alto University. The Times previously reported that Bankman-Fried’s $250 million bail bond was guaranteed by his parents’ home. On the land they rented from Stanford.
“Joe Bankman and Barbara Fried have been close friends with my wife and I since the mid-1990s,” Kramer wrote in a statement. “For the past two years, while my family has faced a horrific battle with cancer, they have been the truest of friends – bringing food, offering moral support, and often stepping in at a moment’s notice to help. In turn, we have sought to support them as they face their own crisis.
He added, “My actions are in my personal capacity, and I have no business dealings or interest in this matter other than the assistance of our loyal and steadfast friends.”
Paepcke did not respond to a request for comment.
A representative for Bankman-Fried declined to comment.
Stanford did not respond to a request for comment. Previously, a representative said a university permit was not necessary to use the Stanford faculty building for Bankman-Fried’s sponsorship.
Recently, Bankman-Fried has used a VPN on at least two occasions, court filings show. Bankman Fried Attorneys He said in the court filing That their client used a VPN to access a NFL Game Pass International Sign up to watch the Super Bowl on February 12th and on January 29th to watch the AFC and NFC Championship games.
All three football matches were freely available on regular television. The Super Bowl and NFC games were broadcast on Fox, and the AFC game was on CBS.
Previously, the court added several new prohibitions on Bankman-Fried pending the outcome of bail negotiations. Bankman-Fried may not use Signal and encrypted chat software, and is prohibited from contacting current or former employees, except for immediate family members, of FTX or Alameda Research, the FTX-linked hedge fund.
On January 15, Bankman-Fried contacted a potential witness on Signal, writing that he “would really love…that we could have a constructive relationship, use each other as sources when possible, or at least check things out with each other.” “
in the courtroom Deposit on WednesdayProsecutors have expressed concern that Bankman-Fried “used a VPN after The court expressed concern about the use of encrypted channels other than those specified by the government in the proposed bail terms, and once he was already aware of the government’s concerns regarding encrypted and undetectable electronic activity.” Prosecutors argued that Bankman-Fried had used the signal “for the purposes of evading Law enforcement disclosure.
Bankman-Fried’s lawyers said in court filings that his use of Signal and VPN had no “improper purpose.”
Bankman Fried’s trial will begin in October. Meanwhile, the conditions for his bail required, among other things, that he surrender his passport, wear an electronic monitoring device, and stay at his parents’ home. Records show that, far from federal detention, he will be confined to a five-bedroom, three-bathroom home of just over 3,000 square feet on nearly an acre with a pool and hot tub.
That Bankman-Fried remains under house arrest rather than in prison reflects a pattern of judges and prosecutors treating privileged people accused of white-collar crimes differently from those without mean or status,” said Allison Siegler, a professor at the University of Chicago School of Law.
“In my 20 years as a federal public defender… I can’t recall a single case in which the government has collected these kinds of serious allegations and then asked a judge to remove a client, rather than move to overturn the case,” Siegler said.