FTX inventor Sam Bankman-Fried was barred from some social activities in recent court documents.
On Wednesday, U.S. District Judge Lewis Kaplan issued a temporary restraining order barring him from contacting exchange staff or Alameda Research hedge fund employees.
The inventor of FTX, would no longer be allowed to partake in specific social activities.
U.S. District Judge Lewis Kaplan granted a temporary restraining order on Wednesday banning Sam Bankman-Fried, the founder of FTX, from communicating with any current or former members of the personnel of the cryptocurrency exchange or those who work for his Alameda Research hedge fund. Additionally, using Signal or any other encrypted texting services is not permitted for Bankman-Fried.
After the defendant, 30, used Signal to chat with a former coworker a few weeks ago, federal prosecutors in Further York asked a judge to impose new bail terms on the 30-year-old man who is accused of fraud in connection with the fall of the FTX enterprise. The accused is held accountable for the cryptocurrency exchange's demise, which led to a string of bankruptcies by associated companies and a complete massacre in the cryptocurrency market.
John J. Ray III, who would succeed Bankman-Fried as CEO of FTX, also received an email from Bankman-Fried on January 2 asking a meeting. Fried's John Ray replaced Bankman as CEO after Bankman's resignation. He is currently concentrating on reorganising the company and making an effort to compensate the firm's depositors for the lost money.
Bankman-Fried's legal representatives are opposing the additional bail requirements by arguing that their client's Signal message to FTX's US general counsel on January 15 was an innocent attempt to offer assistance in the current bankruptcy proceedings. In light of the fact that the general counsel has also been designated as a witness in official court records, the prosecution claimed that Bankman-Fried may be attempting to influence the general counsel's testimony in the case. Ryne Miller has continued to perform his duties since the company filed for bankruptcy in November, despite the fact that his identification as FTX's US general counsel was not made public in the court filings.
According to the text that SBF allegedly sent to Ryne, "I would really want to reconnect and see if there is a way for us to have a productive connection, use one another as resources when possible, or at least vet things with each other."
On Wednesday, United States District Judge Lewis Kaplan said a hearing will take place on February 7, but in the meantime, he imposed the restrictions specified by the government. As part of the $250 million bail deal, Bankman-Fried is currently residing at his parents' home in Palo Alto, California. On January 3, he entered a not guilty plea to the charges brought against him.
