Sam Bankman-Fried barred from contacting FTX employees, using Signal messaging app
Disgraced crypto exchange founder Sam Bankman-Fried can only make contact if attorneys are present, NY judge rules
Sam Bankman-Fried needs to 'zip it': Ira Sorkin
Mintz & Gold partner Ira Sorkin discusses whether accused fraudster Sam Bankman-Fried's 'loose lips' will hurt his criminal case on 'The Claman Countdown.'
FTX founder Sam Bankman-Fried has been temporarily barred from contacting current and former employees of the failed cryptocurrency exchange by himself, a U.S. judge ruled Wednesday, over concerns from federal prosecutors that the 30-year-old might try to influence witnesses.
The ruling from U.S. District Judge Lewis Kaplan in New York also prohibits Bankman-Fried from reaching out to staff at the Alameda Research hedge fund, unless attorneys are present, Reuters reported. Additionally, he is no longer allowed to use the encrypted messaging platform Signal.
Bankman-Fried is accused of diverting massive sums of FTX customer funds to buy property, donate to politicians and finance risky trades at Alameda Research, his cryptocurrency hedge fund trading firm.
Bankman-Fried faces an upcoming trial on eight charges including wire fraud on customers, plus a related conspiracy charge; wire fraud on lenders, plus a conspiracy charge; in addition to conspiracies to commit commodities fraud, securities fraud, money laundering and violate campaign finance laws. He has pleaded not guilty to all charges, and his trial is tentatively scheduled to begin in October.
FTX CRYPTO FOUNDER SAM BANKMAN-FRIED THOUGHT JAIL WOULD BE 'LIKE THE SHAWSHANK REDEMPTION': REPORT
Sam Bankman-Fried leaves court in New York on Jan. 3, 2023. (Fatih Aktas/Anadolu Agency via Getty Images / Getty Images)
Justice Department prosecutors filed the no-contact request with Kaplan late Friday after they discovered a message from Bankman-Fried to the general counsel of FTX on the Signal messaging app, according to their letter to the judge.
On Jan. 15, Bankman-Fried said in a message, "I would really love to reconnect and see if there's a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other."
SAM BANKMAN-FRIED TWEETS AWAY WHILE UNDER HOUSE ARREST
General views of Sam Bankman-Fried’s parents’ home in Palo Alto, California, on Dec. 13, 2022. (Flightrisk for Fox News Digital. / Fox News)
The prosecutors interpreted that exchange as a sign Bankman-Fried could try to influence witnesses in his upcoming trial who may testify against him.
Mark Cohen, who is Bankman-Fried's attorney, blasted the prosecutors' push and characterized the FTX founder's outreach to the company's general counsel as "an innocuous attempt to offer assistance in FTX's bankruptcy process."
CLICK HERE TO READ MORE ON FOX BUSINESS
Sam Bankman-Fried, co-founder of FTX Cryptocurrency Derivatives Exchange, arrives at court in New York on Jan. 3, 2023. (Stephanie Keith/Bloomberg via Getty Images / Getty Images)
The communications rules imposed on Bankman-Fried, who has been placed under house arrest at his parents’ property in Palo Alto, California, will run through at least Tuesday, when another hearing has been scheduled to consider arguments from both sides, Reuters reported.
It also says Bankman-Fried only can communicate with FTX and Alameda Research employees if attorneys are present.
FOX Business’ Eric Revell and The Associated Press contributed to this report.