In the ongoing FTX case, the lawyer for crypto entrepreneur Sam Bankman-Fried (SBF) will soon submit a new bail proposal before Judge Lewis Kaplan of the Southern District of New York.
The decision was made in response to Kaplan's criticism of SBF's usage of virtual private network (VPN) services and encrypted communications apps while on bail.
The Two Camps Are Allegedly Near A Resolution
The indicted FTX cryptocurrency exchange founder's new bail conditions were filed on Friday as he tries to persuade a skeptic judge that he should be allowed to remain free.
SBF's attorney Christian Everdell wrote in a letter to the Manhattan federal court that the parties thought they were "close to a resolution" and anticipated formally proposing new restrictions by the following week.
SBF, 31, is accused of stealing billions of dollars from FTX customers' accounts to cover losses at his Alameda Research hedge fund.
He is also accused of making substantial illegal political contributions to acquire influence in Washington, Channel News Asia reports.
In spite of all the controversies, SBF continues to insist that he is innocent of charges involving the theft of money from FTX users.
The businessman, however, could get 115 years in prison if proven guilty on all eight charges, according to Coin Telegraph.
The current administrators of FTX have disclosed that the former executives of FTX and Alameda Research received $3.2 billion in payments and loans from FTX-affiliated firms throughout the ongoing restructuring of FTX.
In connection to this, Bankman-Fried reportedly took home the largest payout from the group, totaling $2.2 billion.
At the time being, the management of FTX is looking into its legal options for taking possible legal action against the beneficiaries and their subsequent transferees.
Read More: Justice Department's Stricter Bail Plan For Sam Bankman-Fried Requires Him To Use A Flip Phone
Talks Regarding Bail Revisions For The Ex-CEO Have Started
As a result of US District Judge Lewis Kaplan's continued fears that SBF's electronic connections with others would go beyond the parameters of his $250 million bail package, bail discussions started this week.
The former billionaire has not been charged on four of the eight counts for which he has pleaded not guilty.
It can be remembered that he is residing under house arrest in Palo Alto, California, with his parents, Channel News Asia writes.
As Bankman-Fried attempted to get in touch with John Ray, who took over as FTX's CEO after the business declared bankruptcy last November, prosecutors raised the possibility of witness tampering in January.
According to Bankman-Fried's lawyers, their client was trying to assist rather than get in the way of the current prosecution.
Prosecutors and defense attorneys suggested giving the former CEO a flip phone without Internet access and a basic laptop with constrained functionality at the hearing on March 10.
In the letter sent on Friday, Everdell also requested the court's approval to allow Bankman-Fried to use a laptop while waiting to view specific FTX materials.
Even though the laptop would not include monitoring software or Internet access restrictions, a lawyer or paralegal would monitor SBF's use and remove the laptop after he was done using it.
Related Article: Judge Says Former FTX CEO Sam Bankman-Fried's Bail Could be Revoked
