According to the lawyers of the founder of the bankrupt crypto exchange, it is not right to limit Sam Bankman-Fried’s access to the cryptos held by FTX.
Lawyers for Sam Bankman-Fried argued that he should be given access to the crypto assets of his former company, FTX, saying there was no evidence that SBF was responsible for the alleged unauthorized transactions in the past.
Bankman-Fried, who resigned as CEO of FTX on November 11, 2022 when the crypto exchange filed for bankruptcy, is currently out on bail on charges including fraud and money laundering, to which he has pleaded not guilty.
As part of his bail conditions, Bankman-Fried was barred from accessing cryptocurrencies held by FTX and its trading arm, Alameda Research, after the government pointed to illicit transfers from Alameda’s wallets. The ban also extends to cryptos bought with FTX or Alameda money.
“Nearly three weeks have passed since the first preliminary hearing, and we assume that the government’s investigation has confirmed what Mr. Bankman-Fried has been saying all along; namely that he could not access or transfer these assets” – says Bankman-Fried’s lawyer, Mark Cohen, dated January 28 in his letter.
“Given that the only basis raised for the request for this condition has not been substantiated, we believe that the bail condition imposed at trial should be struck out.” Cohen told New York Southern District Judge Lewis Kaplan.
In a Jan. 27 filing, the U.S. Department of Justice requested a communication ban as an additional bail condition, saying Bankman-Fried attempted to contact FTX General Counsel Ryne Miller and a potential witness in the case. In Cohen’s response, he largely agrees with the restriction, but says Bankman-Fried should still have access to some of his former associates, including his therapist, George Lerner.
“Requiring Mr. Bankman-Fried to retain an attorney for all of his communications with former or current FTX employees would unnecessarily strain his resources and impair his ability to defend this case.” Cohen said. “Many of these individuals are friends of Bankman-Fried. A general restriction on his contact with them would eliminate an important source of personal support”.