Bankman-Fried can use flip phone under strict bail scheme

Prosecutor and attorney for FTX founders Sam Bankman-Fried Disgraced cryptocurrency entrepreneur begs to be allowed a flip-phone or other non-smartphone device while on bail.

The proposal, submitted in a letter on Friday, comes as the judge in the case Determining how to tighten Bankman-Fried’s bail requirement comes amid concerns the former billionaire is communicating on electronic devices in ways that cannot be traced.

Prosecutors alleged last month that Bankman-Fried used a virtual private network that prevents third parties from tracking online activity, known as VPNs, from accessing the Internet twice. They also said he sent an encrypted message to FTX US’s general counsel via the Signal texting app in January, a move they argued could indicate witness tampering.

Bankman-Fried has pleaded not guilty to the charges defrauded investors and looted customer deposits on his cryptocurrency platform FTX.

Judge Lewis A. Kaplan, who is overseeing the case, has raised the possibility that Bankman-Fried could go to prison if her communications cannot be monitored to ensure the integrity of the trial. The former FTX chief was released on $250 million bond in December and remains confined to his parents’ home in Palo Alto, California.

Under the proposal, Bankman-Fried’s phone functions would be limited to SMS text messages and voice calls. He will also be given a new laptop with limited access, which will be “configured so that he can only log on to the Internet using specific VPNs” that will only allow access to whitelisted websites. These include sites he may use to prepare for his defense, such as Ftx.com, and those for personal news, such as The New York Times and Netflix.

In the letter, both sides said Bankman-Fried would be allowed to access a number of applications to prepare for her defense, including Zoom, Microsoft Office and Adobe Acrobat. The parties proposed installing a monitoring software on the devices to track any activity and requiring Bankman-Fried’s parents to submit sworn affidavits saying they would not “bring additional devices into the home” or allow access to their own password-protected devices.

Kaplan has yet to decide whether to approve the proposal.