The U.S. Department of Justice has accused FTX co-founder Sam Bankman-Fried of witness tampering in the legal case related to the collapse of the bankrupt cryptocurrency exchange.
U.S. authorities say that Bankman-Fried has been using encrypted messaging software to engage in “witness tampering” and are requesting that a communications block be put on the former crypto billionaire as part of his bail conditions.
Specifically, the Justice Department says that Bankman-Fried reached out to the “current General Counsel of FTX U.S. who may be a witness at trial.” Ryne Miller, who has not been identified by name, is the current counsel for FTX U.S.
The government claims that Bankman-Fried wrote to Miller via Signal, an encrypted messaging app, on January 15, days after bankruptcy officials at the now defunct cryptocurrency exchange announced that they had recovered more than $5 billion U.S. in missing FTX assets.
“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,” Bankman-Fried is accused of writing to Miller.
Bankman-Fried has also been in contact with “other current and former FTX employees,” the legal filing said.
Justice Department prosecutors claim that Bankman-Fried’s request of Miller suggests an effort to influence his future testimony in a legal case that is expected to go to trial this October in New York City.
In restricting Bankman-Fried’s access to Signal and other encrypted messaging platforms, the government cites a need to “prevent obstruction of justice.”
Federal prosecutors further claim that Bankman-Fried uses Slack and Signal for regular communications but sets his messages on those platforms to “autodelete” after 30 days or less.
Bankman-Fried has pled not guilty to eight charges in connection with the collapse last November of his multibillion-dollar cryptocurrency exchange FTX, including wire fraud and accusations that he ran a Ponzi scheme.
Bankman-Fried was released from U.S. custody before Christmas on a $250 million U.S. bond, which is believed to be the largest bail amount ever set in the United States.
