Sam Bankman-Fried (SBF), who is currently facing legal proceedings related to the downfall of FTX, is working with his lawyer, Christian Everdell, to come up with a revised bail package to present to Judge Lewis Kaplan of the Southern District of New York.
The move comes in response to Kaplan's dissatisfaction with SBF's use of encrypted messaging apps and virtual private network (VPN) services while out on bail, reported first by Coin Telegraph and Bloomberg.
Close to a Resolution
SBF had avoided possible jail time with a $250 million bail bond, but he used Signal, an end-to-end encrypted messaging service, to contact former colleagues from FTX and Alameda Research while on bond.
In response, Kaplan prohibited SBF from using such apps and warned that he would revoke his bail privileges if he did not comply.
In a letter to the judge on March 18, Everdell said that SBF and federal prosecutors are "working diligently to agree on a set of specific bail conditions that will address the concerns expressed by the government and the court."
Everdell also mentioned that they are "close to a resolution and anticipate being able to present the court with a proposed order outlining these conditions by next week," according to Bloomberg's report.
SBF maintains his innocence in the allegations related to the misappropriation of FTX users' funds, but if he is found guilty under the eight counts against him, he could face up to 115 years in jail.
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$40,000 for DoorDash Deliveries
The restructuring of FTX has revealed that Bankman-Fried and other top executives at Alameda Research received $3.2 billion in payments and loans from FTX-linked entities.
During the ongoing FTX hearing for its Chapter 11 Bankruptcy case, it was revealed that the companies under Sam Bankman-Fried spent as much as $400,000 for DoorDash deliveries in just a few months. This lavish spending was disclosed in court documents, despite the company's struggles to stay afloat.
Court rulings scrutinizing Alameda Research's excessive expenditure required the business to reveal its spending patterns and allocations before its closure.
In response to a court order, FTX recently revealed the names of its debtors in a news statement, including previously hidden details about the case. The documents also showed that the business spent a lot of money on DoorDash deliveries in a short period.
One of the major cryptocurrency exchange platforms in the world, FTX, declared bankruptcy last year, sending shockwaves through the sector.
Bankman-Fried resigned as the CEO, leaving the company in the hands of a successor who took over during a tumultuous time.
FTX publicly denied initial reports that Bankman-Fried moved digital assets to the Bahamas after the company's demise. Since then, Bankman-Fried, who was extradited from the Bahamas to face fraud accusations, which he denies, has been the target of regulators and law officials.
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