Federal prosecutors are trying to ban FTX founder Sam Bankman-Fried (SBF) from using encrypted messaging like Signal. The FBI is concerned that the app could facilitate potential witness tampering.
Prosecutors alleged in a letter to a Manhattan judge that Bankman-Fried’s overtures to FTX U.S. General Counsel Ryne Miller constituted attempted witness tampering. The government also cited unreleased testimony from former Alameda CEO Caroline Ellison to justify banning SBF.
CNBC reports which Bankman-Fried wrote to Miller via Signal, according to the letter. He reportedly asked for a “constructive relationship” and suggested using each other as resources. Prosecutors allege that in addition to Miller, SBF also contacted “current and former FTX employees.” The government wants Bankman-Fried’s access to Signal – and other encrypted messaging platforms – to be closed to “avoid obstruction of justice”.
Ex-Alameda CEO Caroline Ellison testified that Bankman-Fried stated “many lawsuits revolve around documentation, and it’s harder to build a case if information isn’t written down or retained.”
Bankman-Fried has pleaded not guilty to a litany of fraud-related charges. After being released on $250 million bail into the care of his parents, he is due back in court in October. CNBC said he and his representatives declined to comment on the situation.
The outcome of the plaintiffs’ request regarding Signal will likely shape how the crypto community and authorities view encrypted messaging software in similar cases in the future. It remains to be seen whether this case will lead to a new understanding of witness tampering associated with encrypted messaging technology.
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