SBF Barred From Using Signal to Contact Ex-Employees
Per Reuters
FTX founder Sam Bankman-Fried is being charged with defrauding customers of his crypto exchange, among other charges, and now, he is no longer allowed to contact his former employees via Signal. The ban also includes contacting employees of his hedge fund, Alameda Research.
The general ban is that he is not allowed to contact his former employees, and he is also not allowed to use Signal. This encrypted messaging tool gained popularity after WhatsApp announced that it would update its service terms.
Elon Musk was one of the big names that endorsed the use of Signal due to its encryption technology, allowing users to protect their messages from any third-party viewers. The app surged to the top spot on Google Play Store and Apple App Store free apps in an article reported by CNN on Jan 13.
The decision to ban SBF from using Signal came from US District Judge Lewis Kaplan to address concerns regarding the possibility of the former billionaire tampering with witnesses. The concerns were expressed by Manhattan federal prosecutors, who also said that SBF could potentially destroy important evidence in the case.
This came after news surfaced that on Jan 1, SBF used Signal to message the general counsel of the FTX U.S. affiliate. The message came with a proposal to discuss on the phone.
The report noted that SBF said he wanted to speak to "have a constructive relationship" or "vet things with each other." His lawyers say that the FTX founder is only trying to offer assistance and not interfere with the case.
The news comes after a report highlighted how SBF tried to delay the bankruptcy proceedings in the US back in November to have assets transferred from FTX to foreign regulators. The report also noted that Bahamian customers could withdraw millions of dollars despite the exchange freezing customer accounts elsewhere.
The Sullivan & Cromwell lawyers working on the case make $810 to $2,000 per hour. There are reportedly 150 lawyers working on the case.
See flow at unusualwhales.com/flow.
Other News:
- FTX founder Sam Bankman-Fried attempted to stall bankruptcy proceedings in the U.S. in November in order to transfer assets from his crypto exchange to foreign regulators
- FTX Lawyers are Making $810 to $2,000 Per Hour: Sullivan & Cromwell has 150 Lawyers on the Case
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