Sam Bankman-Fried is in talks with US prosecutors to resolve a dispute over the bail conditions of cryptocurrency exchange FTX founder, his attorney said Thursday.
The judge oversees Bankman Fried’s The criminal fraud case in Manhattan federal court on Wednesday temporarily barred the 30-year-old former billionaire from contacting employees of FTX or his hedge fund Alameda Research after prosecutors raised concerns he might be tampering with witnesses.
His lawyers previously countered that he had contacted current executives at the now-bankrupt exchange to offer “help” and not interfere, and therefore the additional bail condition was not necessary.
Bankman-Fried has pleaded not guilty and is under house arrest at his parents’ home in California.
In a court filing, defense attorney Mark Cohen asked U.S. District Judge Lewis Kaplan to delay a Feb. 7 hearing on the matter, as well as a Feb. 2 deadline to explain why he should be allowed access and transmission cryptocurrency before the process.
“The parties wish to continue these discussions, which we are optimistic will lead to an agreement between the parties over the next few days and eliminate the need for further litigation,” Cohen wrote, noting that prosecutors had approved the request.
A spokesman for the US Attorney’s Office in Manhattan declined to comment.
Bankman-Fried was once estimated to be worth US$26 billion (approximately Rs.2.12.989 billion) and was arrested in December following the collapse of FTX.
Prosecutors said he looted billions of dollars in FTX client funds to offset losses at Alameda. Two former colleagues have pleaded guilty and are cooperating with prosecutors.
Bankman-Fried has acknowledged flaws in risk management but said FTX collapsed because of a liquidity crisis and that it did not steal any funds. A trial is scheduled for October 2nd.
© Thomson Reuters 2023
