The disgraced founder of cryptocurrency exchange FTX, Sam Bankman-Fried, has reportedly tried to influence some potential witnesses in his trial through encrypted messaging software Signal.
federal prosecutor Told The disgraced crypto boss has reached out to “the current General Counsel of FTX US who may be a witness at trial,” according to a letter filed in Manhattan federal court on Friday. The current council for FTX US is Raine Miller, also a former partner at Kirkland & Ellis. Miller was not identified by name in the government filing.
Prosecutors said Bankman-Fried wrote to Miller via Signal on January 15. Others,” he reportedly said in the message.
The move comes after new FTX management announced recovered over $5 billion In cash and liquid assets that can be used to repay creditors. At the time, advisors to the exchange said it was “yet unclear” how large the settlement fund would be for FTX creditors.
The filing states that in addition to Miller, the SBF has also been in contact with “other current and former FTX employees.” US officials claim that the SBF’s request suggests an attempt to influence witness testimony, and that his attempt to repair his relationship with Miller “may itself constitute witness tampering.”
Citing fears of potential witness tampering, prosecutors have asked the court to ban the SBF from using the messaging platform, saying it is necessary to “prevent obstruction of justice”.
As reported, the US Department of Justice objected to FTX hiring Sullivan & Cromwell, the law firm currently tasked with investigating the exchange, earlier this month citing a potential conflict of interest. That’s because Miller, FTX US general counsel, previously worked at S&C for eight years. The DOJ said the investigation would place the law firm “in the conflicting position of investigating itself and its former partner.”
Prior to the DOJ’s objection, a bipartisan group of four United States senators including John Hickenlooper, Thom Tillis, Elizabeth Warren and Cynthia Lummis criticized the S&C for almost identical reasons.
FTX and its group of crypto companies filed for Chapter 11 bankruptcy In early November. Sam Bankman-Fried, disgraced founder of FTX, was arrested later after criminal charges were formally filed against him by US prosecutors in the Bahamas. He was eventually extradited to the US where he was later released from prison. posting a $250m bond in a New York court.
SBF has been charged with eight criminal charges, including wire fraud and conspiracy by misappropriation of customer funds, to which it pleaded not guilty earlier this month. He is due in federal court in October.
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