-Sam Bankman-Fried, founder of cryptocurrency exchange FTX, has been accused of trying to influence witnesses of his trial by sending messages via encrypted messaging software Signal.
-The messages were sent to the current general counsel of FTX US, Ryne Miller, as well as “other current and former FTX employees.”
-US prosecutors have asked the court to ban SBF from using the messaging platform, citing fears of possible witness tampering.
Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, has been accused of trying to influence witnesses of his trial. According to a letter filed in Manhattan federal court on Friday, US prosecutors allege that Bankman-Fried sent messages via encrypted messaging software Signal to the current general counsel of FTX US, Ryne Miller, as well as “other current and former FTX employees.”
The messages are said to have been sent on January 15, with Bankman-Fried reportedly writing to Miller that he wanted 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.” This comes after the new FTX management announced the recovery of over $5 billion in cash and liquid assets to be used to repay creditors, although it is “not yet clear” how large the settlement fund will be.
In light of this, prosecutors have asked the court to ban SBF from using the messaging platform, citing fears of possible witness tampering and the need to “prevent obstruction of justice.” This is not the first time Bankman-Fried has been in trouble with the law; in October 2020, he was accused of fraudulently manipulating the prices of cryptocurrencies on FTX. He has denied all accusations of wrongdoing.
The decision of the court remains to be seen, with the consequences of this incident yet to be determined. Regardless, the case serves as a warning to those involved in the cryptocurrency industry, highlighting the importance of regulatory compliance and the potential ramifications of not following the law.