By Michael Scott
Attorneys representing the embattled FTX founder Sam Bankman-Fried petitioned the court to grant access to the assets. The lawyers argued that the restriction imposed on Bankman-Fried failed to demonstrate evidence that would warrant the denial of cryptos held by FTX. In particular, SBF’s lawyers submitted that the prosecution could not produce proof warranting the restrictions imposed as part of the bail conditions.
Challenging the Restriction Imposed on Accessing Cryptos
Bankman-Fried’s attorneys demonstrated that denying the former FTX executive access to the crypto assets was erroneous since no evidence was produced affirming his input in the alleged unauthorized transactions.
The motion filed by the attorneys comes after the former FTX chief executive is out on bail over an alleged role in money laundering and wire fraud. Bankman-Fried pleaded not guilty after his voluntary extradition to the US from the Bahamas.
The bail conditions bar SBF from accessing cryptos identified as holdings of Alameda Research and FTX. The prosecutions cited the illicit transfers of cryptos detected within wallets controlled by Alameda. The prohibition scope was extended to include cryptos acquired via Alameda Research and FTX funds.
Absence of Proof on Denying Access to Cryptos
SBF’s attorney Mark Cohen submitted that three-week times have lapsed since the pretrial conference. In his January 28 letter, Cohen indicates that by now, the investigation ought to have affirmed the Bankman-Fried’s stance denying access and responsibility in transferring the cryptos. The lawyer submitted to the Southern District of New York judge Lewis Kaplan that the investigation had failed to support the primary purpose for imposing the ban.
The application by SBF lawyer comes hours after the Department of Justice (DoJ) January 27 filing petition communications ban inclusion to the bail condition. The application alleges that Bankman-Fried tried contacting the crypto exchange counsel Ryne Miller.
Imposing Communication Restrictions
Cohen’s response to the DOJ petition on restricting communication challenged the application, arguing the need to access former staffers. He added that the inclusion of counsel in SBF communication with former staffers would impose unnecessary strain on his resources and the capability to defend the fraud trial.
Cohen argued that former and current FTX staffers are friends with the Bankman-Fried. Consequently, imposing the blanket restriction DoJ sought would extinguish critical support sources.
Cohen explained the Bankman-Fried message to current FTX staffers as one offering assistance. He added that the message went unanswered despite its delivery to the recipients, FTX CEO John Ray and Miller.