DOJ backs move to stop SBF from accessing FTX and Alameda resources

In the criminal case against Sam Bankman-Fried, US prosecutors uncovered text and email messages from Bankman-Fried to the current FTX Chief Executive Officer, John Ray. These documents provide a crucial insight into the business operations of FTX before its sudden change in leadership.

On January 30, court documents revealed that the Department of Justice (DOJ) had denied Bankman-Fried’s legal team’s motion to remove proposed modifications for his bail conditions. These modifications included refraining from any interaction with former and current FTX employees. Prosecutors informed that SBF had attempted to connect with both John Ray (current CEO at FTX) and Ryne Miller (FTX US general counsel).

On January 2, Bankman-Fried sent an email to Ray expressing regret for not starting out on the right foot and proposed a meeting in New York City. He was given permission by his parents to exit his California home so that he could make it into court and plead not guilty. The message followed a communication from December 30 where SBF explained the situation relating to funds linked with Alameda wallets:

Although I can’t access the funds, it is plausible that you and your team have the necessary authority to transfer as well as protect these assets. It would be my pleasure to discuss how likely you are able to access them if need be.

Sam Bankman-Fried

Bankman-Fried stated in his January 12 statement of FTX’s impending collapse that the law firm Sullivan & Crowell and the US general counsel for FTX put pressure on him to name Ray as his replacement. In response to SBF’s remarks about no ongoing role with any subsidiaries of FTX, Ray asserted that he does not represent or speak on their behalf.

Bankman-Fried’s filings on January 27 demonstrate that he allegedly tried to contact Miller in an effort to sway his criminal testimony, prompting prosecutors to file a motion amending SBF’s bail conditions so as not only to disallow any communication with FTX employees via encrypted messaging applications such as Signal but also to bar him from accessing or transferring assets related either directly or indirectly with both FTX and Alameda.

The District of Delaware is well in motion with the bankruptcy proceedings for FTX, while SBF’s criminal trial will begin in October.

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