Federal prosecutors allege FTX founder Sam Bankman-Fried’s efforts to control about $500 million worth of Robinhood shares last year indicates steps the former crypto entrepreneur has taken to “obscure” his alleged crimes.
Prosecutors have since seized the stock and other assets totaling more than $700 million after Bankman-Fried laid claim to the shares saying he legitimately bought them and needed the money to defend against the criminal charges he’s facing.
Federal prosecutors allege FTX founder Sam Bankman-Fried’s efforts to control about $500 million worth of Robinhood shares last year indicates steps the former crypto entrepreneur has taken to “obscure” his alleged crimes.
Bankman-Fried has since laid claim to the shares saying he legitimately bought them and needed the money to defend against the criminal charges he’s facing. Prosecutors seized the stock and other assets totaling more than $700 million after Bankman-Fried’s alleged claim.
suggest that these are not bona fide customer claims.”
Prosecutors argued that Bankman-Fried should not be allowed to move FTX assets, despite his claims that he would use the funds to make customers whole. They claim that the original circumstances of the purchase of FTX shares through a foreign special purpose vehicle suggest that the claims are not bona fide customer claims.
Bankman-Fried’s lawyer has argued that the bail conditions are too restrictive and that they would effectively keep him in prison.
The new bail conditions proposed by prosecutors come as Bankman-Fried’s lawyers and prosecutors argue over the terms of his bail. Prosecutors want to limit Bankman-Fried’s contact with people from FTX and Alameda Research, as well as restrict his use of encrypted messaging apps. Bankman-Fried’s lawyers argue that the proposed bail conditions are too restrictive and would effectively keep him in prison.
The new allegation of witness tampering comes as Bankman-Fried’s bail is being negotiated. Prosecutors want to limit who Bankman-Fried can be in touch with from FTX and its sister hedge fund Alameda Research. They also want to restrict him from using encrypted messaging apps after he previously used them at FTX with the auto-delete. This could be a problem for Bankman-Fried, as he has been in touch with many people from FTX and Alameda Research since his arrest.
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