Judge orders Sam Bankman-Fried to be barred from accessing or transferring any FTX or Alameda assets

Sam Bankman-Fried walks out of court.

Sam Bankman-Fried leaves federal court in Manhattan after being indicted on Tuesday.David Dee Delgado/Reuters

  • Bankman-Fried himself denied any role in the recently reported fund transfers involving Alameda.

  • His lawyer argued that his client had nothing to do with it, but prosecutors said they were skeptical.

  • A federal judge sided with the prosecutors and blocked him from accessing Alameda and FTX assets.

Bankman-Fried himself has been blocked from accessing and making transfers involving Alameda and FTX assets, following a recent report in Cointelegraph that indicated that some of Alameda’s crypto assets were transferred in December.

U.S. District Judge Lewis Kaplan, who presided over the Bankman-Fried indictment on Tuesday, in which the founder of FTX and Alameda pleaded not guilty, granted prosecutors’ request to stop him from such transactions.

Bankman-Fried, who has been released and is staying with his parents in California on a $250 million bail deal, tweeted Friday that he was not involved in any of the transactions referenced in the Cointelegraph report.

“I am not and could not transfer any of these funds; I no longer have access to them,” he wrote.

At a hearing on Tuesday, Assistant U.S. Attorney Danielle Sassoon said that while she wasn’t sure who had access to Alamed’s accounts, wire transfers have now moved those funds out of government reach for asset confiscation.

Sassoon said prosecutors had no reason to believe Bankman-Fried’s tweet and that he lied in previous tweets in which he denied using FTX customer funds and attempted to transfer cryptocurrency assets to offshore regulators to avoid the consequences of FTX’s bankruptcy.

“We don’t attach much importance to it,” she said.

Bankman-Fried’s attorney, Mark Cohen, strongly opposed the condition. He said on Tuesday that the transfers were made at the behest of a court in the Bahamas, where FTX is undergoing bankruptcy proceedings parallel to those pending in Delaware, and that Bankman-Fried was not involved.

Kaplan’s ruling blocks Bankman-Fried from these deals, though it allows him to reach an agreement with prosecutors on a possible different deal.

“I think the condition is reasonable,” Kaplan said.

On Tuesday, Kaplan set a hearing date of October 2, although Bankman-Fried may have previously worked with prosecutors to negotiate a settlement. He faced eight charges, including fraud and conspiracy.

Read the original article in Business Insider

Leave a Reply

Your email address will not be published. Required fields are marked *