Former FTX CEO Sam Bankman-Fried's message to a former employee of FTX, who turned witness for the government against him, "raises a sufficient specter of witness tampering" the United States (US) government argued.

In a January 27 letter to US Judge Lewis Kaplan, US Attorney in the Southern District of New York Damian Williams asked the court to impose further restrictions on Bankman-Fried's bail.

Bankman-Fried, who is on $250 million bond, is accused of stealing billions of dollars from customers of his cryptocurrency exchange.

He has pleaded not guilty to charges.

Williams wants the court to order that Bankman-Fried "not contact or communicate with current or former employees of FTX and Alameda (other than immediate family members) except in the presence of counsel, unless the government or court exempts an individual from this no-contact rule; and not use any encrypted or ephemeral call or messaging application, including but not limited to Signal".

As part of his letter, Williams attached a text message, dated January 15, 2023, that Bankman-Fried sent to Witness 1 via Signal.

It read, "Hey, I know it's been a while since we've talked. And I know things have ended up on the wrong foot. I would really love to reconnect and see if there's a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other. I'd love to get on a phone call sometime soon and chat. Sam."

He sent the same message via email to Witness 1 as well, Williams wrote.

"The defendant's request to vet things with each other is suggestive of an effort to influence Witness 1's potential testimony, and the appeal for a constructive relationship likewise implies that Witness 1 should align with the defendant," Williams said.

"This is particularly concerning given that the defendant is aware that Witness 1 has information that would tend to inculpate the defendant. The government has interviewed Witness 1, who has firsthand knowledge of the defendant's conduct during the charged conspiracies, including during the collapse of FTX in November 2022."

Williams said this contact warrants the imposition of further restrictions.

Bankman-Fried also reached out to FTX CEO John Ray III last December, offering assistance.

However, Bankman-Fried's attorney argued, in a counter letter to Kaplan, that no further restrictions should be imposed.

"The government's filing is a remarkable example of sharp practice, as it omits any mention of the fact that the parties had been meeting and conferring for over a week about modifying the bail conditions and were still in discussions when the government filed its letter," Mark Cohen wrote.

He said the message that Bankman-Fried sent to Witness 1 via Signal and email "does not justify the overboard restriction the government seeks".

"As explained above, Mr. Bankman-Fried's message to Witness 1 was merely an innocuous attempt to offer assistance in FTX's bankruptcy process and does not reflect misconduct that warrants the restriction the government proposes here," he said.

But in a January 30 letter to Judge Kaplan, Williams said, "...The defendant's position of authority with respect to his former employees, combined with his recent outreach to a former employee about the case, raises a sufficient specter of witness tampering to justify the proposed condition."

He wrote, "Asking a potential witness to be a resource to him, and to vet things with him — without any clarification of a supposedly benign intent — shows an effort to improperly influence Witness 1.

"Tellingly, the defense proffers no permissible or innocuous means by which Witness 1 could be a resource to the defendant. Although, as the defense points out, Witness 1 did not respond to the message, Witness 1's attorney promptly alerted the government to the defendant's concerning overture."

The post US says SBF messaged a witness; wants further bail restrictions appeared first on The Nassau Guardian.

The post US says SBF messaged a witness; wants further bail restrictions appeared first on The Nassau Guardian.

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