June 1, 2023


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Sam Bankman-Fried lawyers reach agreement on use of messaging apps

2 min read

Federal prosecutors and Sam Bankman-Fried’s (SBF) legal team have reached a consensus regarding the use of encrypted messaging apps by the former FTX CEO.

The agreement, outlined in a Feb. 6 court document, stipulates that SBF must abstain from utilizing any encrypted or ephemeral messaging app, including but not limited to Signal.

The former FTX CEO, Sam Bankman-Fried (SBF), will still be able to communicate through various platforms including FaceTime, Zoom, iMessage, SMS text, email, and Facebook Messenger, according to the agreement reached between SBF’s lawyers and federal prosecutors.

However, the use of the encrypted messaging app WhatsApp will only be permitted if monitoring technology is installed on SBF’s cellphone to log and preserve all communications.

This agreement is a result of federal prosecutors’ push to ban SBF from contacting current or former employees of FTX or its sister trading firm, Alameda Research.

On Jan. 15, prosecutors accused SBF of attempting to influence the testimony of FTX US General Counsel, Ryne Miller, through the encrypted messaging app Signal.

On Jan. 30, SBF was accused of contacting FTX CEO, John Ray, to discuss ways of accessing funds tied to Alameda wallets.

In accordance with a Feb. 1 ruling, SBF is prohibited from communicating with current or former employees of FTX or Alameda Research, except in the presence of counsel, as a condition of his bail until his trial.

As of now, SBF is under house arrest in Palo Alto, California, and is set to face his criminal trial in October at a Manhattan United States District Court.

FTX’s bankruptcy proceedings continue in the District of Delaware, with CEO Ray providing testimony on February 6th. In his testimony, Ray highlights the difficulties he faced when taking over the company in November, revealing that there was a complete lack of information regarding bank accounts, income, insurance, and personnel.

To make matters worse, FTX was hacked on the very day Ray started guiding the company through its Chapter 11 bankruptcy process.

Ray described the experience as ‘pure hell,’ as the hacks went on for almost 48 hours non-stop.

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