NEW YORK (AP) – The federal judge presiding over the case prosecutors brought against FTX founder Sam Bankman-Fried said yesterday that the cryptocurrency entrepreneur can remain on the West Coast while his lawyers attend a hearing tommorrow.
Judge Lewis A Kaplan set the pretrial hearing in New York City and excused Bankman-Fried from attending.
Three weeks ago, Kaplan suggested that jailing Bankman-Fried might be the best way to keep him from attempting to break rules he must follow under the terms of his USD250 million bond. He has been allowed to stay with his parents in Palo Alto, California, while he awaits trial.
His communications have been a particular area of concern, though lawyers on both sides have apparently struck a deal that might be addressed by the judge tommorrow.
Prosecutors said in a letter to the judge last Friday that Bankman-Fried’s attorneys had agreed Bankman-Fried could have a flip phone or other non-smartphone with either no internet capabilities or its Internet capabilities disabled.
Several weeks ago, prosecutors alleged that Bankman-Fried accessed the Internet twice through a virtual private network ( VPN), which blocks third parties from seeing online activity.
Prosecutors recently boosted charges against Bankman-Fried, who had pleaded not guilty to charges that he cheated investors and looted customer deposits at FTX, his cryptocurrency platform.