Sam Bankman-Fried's Lawyers Appeal 'Sandbag' Motion To Limit SBF's Freedom

Attorneys representing Sam Bankman-Fried fought against a motion to restrict SBF from talking with FTX employees and former colleagues without lawyers present, Reuters reported on Monday. 

Bankman-Fried’s lawyers wrote a letter to U.S. District Judge Lewis Kaplan claiming that the prosecutors “sandbagged” the bail hearing process. According to the SBF’s attorneys, prosecutors filed unfair bail conditions without receiving feedback from talks supposedly held between both sides last week. 

Rather than wait for any response from the defense, the government sandbagged the process, filing this letter at 6:00 p.m. on Friday evening. “The government apparently believes that a one-sided presentation – spun to put our client in the worst possible light – is the best way to get the outcome it seeks.

Prosecutors accused the former FTX CEO of tampering with evidence and witness testimony in a Friday filing. Federal attorneys claimed that SBF made contact with was potential witness despite awaiting criminal trial on eight charges including fraud. 

Indeed, government attorneys asked the judge to issue tighter bail conditions that would make it impossible for Sam Bankman-Fried to interact with employees at FTX and Alameda Research. The ban would also restrict SBF from using encrypted messaging tools like Signal and Slack. 

Judge Kaplan is expected to give a decision on the matter this Friday, per reports.

Sam Bankman-Fried Awaits October 2023 Trial 

The disgraced FTX Founder was released on a $250 million bail bond back in later December 2022. Prosecutors and other parties in the matter filed a motion to unseal the names of two sureties for SBF’s massive bail. 

Sam Bankman-Fried was then released and placed under arrest house arrest at his parents’ property in Palo Alto, California. 

His criminal trial is set to kick off by October 2023 where he will face eight charges including fraud and money laundering. SBF pleaded not guilty to all charges and remains adamant that FTX U.S. is solvent with enough funds to pay back customers. The former crypto tycoon did not make the same statements about FTX International. 

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