Former FTX CEO Sam Bankman-Fried (C) arrives to file an appeal before U.S. District Judge Lewis Kaplan in federal court in Manhattan, New York, January 3, 2023.
Ed Jones | AFP | Getty Images
Federal prosecutors are trying to bar indicted FTX co-founder Sam Bankman-Fried from using messaging encryption software, citing efforts that may “constitute witness tampering,” according to a letter filed in Manhattan federal court on Friday.
Bankman-Fried contacted “current FTX US general counsel who may be a witness at the trial,” prosecutors said. Ryne Miller, whose name has not been identified in government records, is current general counsel for FTX US and a former partner at Kirkland & Ellis.
The government says Bankman-Fried wrote to Miller via Signal, a messaging app, on January 15, days after cryptocurrency exchange officials revealed the recovery of over $5 billion worth of FTX assets.
“I’d really like to reconnect and see if there’s a way for us to have a constructive relationship, use each other as resources if possible, or at least check in with each other,” Bankman-Fried allegedly told Miller.
Bankman-Fried was also in contact with “other current and former FTX employees,” the filing reads. Federal prosecutors say Bankman-Fried’s request suggests an attempt to influence the witness’ testimony, and that Bankman-Fried’s efforts to improve his relationship with Miller “may in themselves constitute witness manipulation.”
Both Miller and a representative from Bankman-Fried declined to comment.
By restricting Bankman-Fried’s access to Signal and other messaging platforms, the government cites the need to “prevent obstruction of justice.” Federal prosecutors say Bankman-Fried ran Alameda and FTX through Slack and Signal, and ordered his employees to set communications to “auto-delete after 30 days or less.”
Citing previously undisclosed testimony from former Alameda CEO Caroline Ellison, the government said Bankman-Fried pointed out that “many lawsuits involve documentation, and it’s harder to build a legal case if the information isn’t written down or preserved.” Ellison has pleaded guilty to multiple fraud charges and is working with the U.S. Attorney to build a case against Bankman-Fried.
Bankman-Fried pleaded not guilty to eight counts in connection with the collapse of his multi-billion-dollar crypto empire, FTX. He is due to appear in federal court in October after being released on $250 million bail.