Sam Bankman-Fried proposes revised bailout package ‘next week at the latest’

The attorney 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 over SBF’s use of encrypted messaging apps and virtual private network (VPN) services while out on bail.

Lawsuits surrounding FTX’s downfall caused SBF to avoid possible jail time with bail set at $250 million. But while out on bond, the entrepreneur used Signal, an end-to-end encrypted messaging service, to contact former FTX and Alameda colleagues. Kaplan banned SBF from using such apps and threatened to revoke bail privileges if he acted in disorder.

Following that order, Bankman-Fried’s attorney, 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 raised by the government and the court has expressed,” Bloomberg reported. In the letter, Everdell stated:

“We believe we are close to a resolution and expect to be able to submit a proposed order outlining these matters to the court next week.”

SBF maintains its innocence in allegations regarding the misappropriation of FTX users’ funds. However, the contractor could risk 115 years in prison if he is found guilty of the eight charges against him.

Related: FTX Debtors Report $11.6B in claims, $4.8 billion. in assets, with many crypto holdings ‘indefinite’

During the ongoing restructuring of FTX, the current administrators revealed that FTX and Alameda Research’s former chief executive received $3.2 billion in payments and loans from FTX-affiliated entities.

Out of the party, Bankman-Fried allegedly received the lion’s share of the $2.2 billion funds.

As Cointelegraph reported, FTX’s management is exploring its rights to pursue potential lawsuits against the beneficiaries and their successor beneficiaries.

Leave a Reply

Scroll to Top
%d bloggers like this: