Saudi Press

Saudi Arabia and the world
Monday, Apr 06, 2026

FTX collapse: Bankman-Fried may get flip phone under tougher restrictions

FTX collapse: Bankman-Fried may get flip phone under tougher restrictions

FTX founder's proposed bail conditions under review by judge overseeing case

FTX founder Sam Bankman-Fried could be permitted to have a flip-phone for calls and texts only, under a proposal submitted to a judge deciding on bail conditions for the former crypto titan.

Bankman-Fried faces more than a lifetime in prison if convicted on allegations of defrauding investors, wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering.

According to the allegations, the Bankman-Fried diverted customer funds from the start of his cryptocurrency exchange to support his hedge fund, Alameda Research, and used his fraudulent practices to fund a lavish lifestyle while buying real estate, making venture investments and funding Democratic causes.

The FTX founder was released after posting $250 million bond in December and was ordered to live in his parent’s home in Palo Alto, California.

In February, Bankman-Fried received additional charges including conspiring to operate an unlicensed money transmitting business and conspiring to make unlawful political contributions while defrauding the Securities and Exchange Commission, or SEC.

FTX CEO Sam Bankman-Fried attends a press conference at the FTX Arena in downtown Miami on June 4, 2021.


Judge Lewis Kaplan, who is overseeing the case, has questioned the prosecution on why they did not pursue having Bankman-Fried behind bars as he awaits trial.

Prosecutors previously raised concerns that Bankman-Fried could use virtual private networks (VPNs) or encrypted messaging apps to tamper with witnesses.

In a letter to the judge, prosecutors and Bankman-Fried’s attorneys proposed modifications to the defendant’s bail conditions.

Particularly, the letter proposes that Bankman-Fried not be permitted to contact or communicate with former employees of FTX or Alameda, except when counsel is present or if an exemption is granted by the government or court.

BRAZIL - 2022/06/20: In this photo illustration, the stock trading graph of FTX Token (FTT) seen on a smartphone screen.


The attorneys proposed the defendant be prohibited from using encrypted or ephemeral call or messaging applications, including "Signal," and from using VPN, except as allowed under his bail conditions.

The proposal also confines Bankman-Fried to the use of a flip phone or non-smartphone that does not have internet capabilities or has internet capabilities disabled. The serial number, IMEI number and several other phone-identifying keys are required to be provided to the courts, and Bankman-Fried would only be permitted to use the phone for text messages and calls.

Bankman-Fried would also be allowed to have a new computer but with limited functionalities, and like the phone, the serial number and other device-identifying keys would have to be provided to the courts.

Some of the software permitted on the computer include Zoom, Microsoft Office, Adobe Acrobat, and Python, which would allow Bankman-Fried to read the FTX codebase.

The computer is required to have monitoring and security software that logs Bankman-Fried’s activity and stores it to a cloud-based repository.

Judge Lewis A. Kaplan, who is overseeing the case, has suggested that Bankman-Fried may need to be jailed if his communications cannot be monitored, according to the Associated Press, and he has not decided whether to approve the proposal.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Iranian Drone Strike on US Embassy in Saudi Arabia Reportedly Targeted Intelligence Facility
Saudi Deputy Foreign Minister Meets French Embassy Official to Strengthen Bilateral Engagement
Saudi Arabia Calls on United States to Seize Strategic Opportunity to Reshape Middle East
Dating Apps Surge in Saudi Arabia as Social Norms Rapidly Evolve Among Youth
Saudi Arabia Detains Over Fourteen Thousand Illegal Residents in Week-Long Enforcement Drive
Saudi Foreign Minister Engages in Diplomatic Talks with Pakistan, Kuwait and Latvia on Regional Developments
Saudi Arabia Intercepts Cruise Missile as Regional Tensions Intensify
Saudi Stock Market Edges Higher as Tadawul Index Records Modest Gain
Underlying Rivalry Between Saudi Arabia and UAE Persists Despite Temporary Calm
Saudi Arabia’s Non-Oil Sector Contracts in March as Regional Tensions Weigh on Business Activity
Saudi Arabia Unveils Ambition to Establish Prestigious Global Prize Rivaling the Nobel
Saudi Crown Prince to Engage Wall Street in Push for Investment and Economic Expansion
Iran Accuses Saudi Arabia and UAE After Downing of Chinese-Made Drone
Saudi Arabia Condemns Attack on Hospital in Sudan, Calls for Protection of Civilians
Coordinated Drone Strike Targets CIA Facility Within US Embassy in Saudi Arabia
Italy’s Meloni Prioritises Energy Security and Strait of Hormuz Stability During Gulf Tour
Uncertainty Emerges Over Timeline and Direction of Saudi Arabia’s Ambitious Ski Resort Project
UAE and Saudi Arabia Escalate Strategy with Drone Operations Targeting Iran
Trump Delivers Characteristic Remarks on Saudi Crown Prince Amid Intensifying Iran Conflict
Drone Strike on US Embassy in Riyadh Caused Greater Damage Than First Reported
Saudi Arabia Introduces Flexible Solutions for Expired Visas Amid Regional Disruptions
Saudi Arabia’s Online Car Market Accelerates with AI Pricing and Fully Digital Buying Experience
Saudi Arabia Reassesses Defence Strategy as Iranian Drone Threat Drives Shift in Military Partnerships
Drone Strikes Target Saudi Arabia, Kuwait and Bahrain as Regional Conflict Intensifies
Japan and Saudi Arabia Align Efforts to Ease Rising Tensions with Iran
Saudi Crown Prince and Italy’s Meloni Strengthen Strategic Ties in High-Level Talks
SpaceX Explores Potential Five Billion Dollar Investment from Saudi Sovereign Wealth Fund Ahead of IPO
Saudi Arabia Lifts Key Import Barriers to Expand Access for U.S. Beef Exports
Saudi Arabia Enforces Strict Travel Penalties for Visits to Restricted Countries
Italy’s Meloni Embarks on Strategic Gulf Tour to Address Energy Security and Regional Stability
Saudi Film Festival Rescheduled to Summer as Regional Tensions Continue
Saudi Arabia Reports Forty Two Point Six Billion Dollars in Foreign Tourist Spending in 2025
Saudi Crown Prince and Russian President Hold Strategic Call on Escalating Regional Crisis
Saudi Arabia Advances Rail Network as Strategic Alternative to Strait of Hormuz Shipping Route
Ruanyun Edai Launches Saudi Arabia Hub With Forecast of Ten Percent Revenue Growth
Greek Defence Minister Visits Troops in Saudi Arabia Following Successful Missile Interception
Saudi Arabia Expands Global Strategy With Focus on African Critical Minerals
SpaceX Explores Potential Five Billion Dollar Investment From Saudi Fund Ahead of Possible IPO
US Central Command Dismisses Iranian Claim of Mass Casualties Among American Personnel in Saudi Arabia
Co-Diagnostics to Establish Molecular Diagnostics Facility in Saudi Arabia Through Joint Venture
Trump Engages Saudi Crown Prince in Talks on Potential Iran Ceasefire
Saudi Arabia’s Sadara Suspends Operations as Supply Chain Disruptions Intensify
Saudi Arabia Accelerates Energy Shift by Trading Oil Revenues for Battery Investments
Saudi Arabia Introduces Flexible Options for Expired Visas Amid Regional Disruptions
Online Narratives Surge as Iran–US Tensions Spill Into Digital Arena Following Trump Remarks
Saudi Arabia Urges Trump to Seize Strategic Moment as UAE Weighs Ground Deployment
Saudi Arabia Redirects Nearly One Million Barrels of Oil Daily Away from Strait of Hormuz
Saudi Arabia Carries Out Execution of Businessman Linked to 2011 Qatif Unrest
Ukraine–Saudi Defense Pact Signals Rising Demand for Battlefield Expertise
Saudi Arabia Balances Diplomacy and Defense Preparedness Amid Iran Conflict
×