London Daily

Focus on the big picture.
Sunday, Jun 14, 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

0:00
0:00
Close
Royal Navy Takes Part in Trooping the Colour for the First Time in 350 Years
Think Tank Warns Labour's European Union Reset Could Carry Significant Economic Costs
UK Semiconductor Centre and Japan's Rapidus Forge Advanced Chip Manufacturing Partnership
UK and Japan Launch Offshore Wind Compact Backed by £9 Billion in Investment
Starmer and Trump Discuss Iran Peace Efforts and Reopening of the Strait of Hormuz
United Kingdom and Japan Sign £18 Billion Investment Partnership Focused on Clean Energy and Advanced Technology
Barclays Moves to Acquire GoHenry in Bid to Expand Youth-Focused Fintech Services
UK Lupus Patients Show Remission in NHS Genetic Therapy Trial
London Clean Air Zones Linked to Fewer Emergency Hospital Admissions for Respiratory Illness
UK World Cup Scheduling Research Suggests Energy Bill Savings From Off-Peak Usage
UK Economic Anxiety Rises Among Young People Over Long-Term Job Prospects
NHS Expands Meningitis B Vaccination Programme for School Leavers and New Students
London Ultra-Low Emission Zone Linked to Drop in Emergency Respiratory Hospital Admissions
Derbyshire Police Officer Investigated Over Alleged Use of AI-Generated Evidence in Case Files
UK Parents Back Proposed Under-16 Social Media Ban as Online Safety Concerns Grow
Four Palestine Action Activists Jailed Over Sabotage Attack on Israeli-Linked Arms Facility
Barclays to Acquire GoHenry in Push to Expand Digital Banking for Children and Teenagers
UK Government Reaffirms Defence Spending Commitment Amid Cabinet Pressure and Political Disputes
Belfast Unrest Prompts Security Review as Paramilitary Activity Comes Under Renewed Scrutiny
SpaceX IPO Pushes Elon Musk to Become World’s First Trillionaire After Record Valuation Surge
United States and Iran Near Landmark Peace Framework as Negotiations Reach Final Stages
UK Competition Watchdog Investigates Ryanair Family Seating Charges
Imperial College Study Links London Emissions Charges to Lower Hospital Admissions
Scottish First Minister Launches US Trade Initiative Ahead of World Cup Match in Boston
Fifteen Million Workers Gain Expanded Sick Pay Rights Under UK Reforms
British Retail Investors Secure Record Participation in SpaceX Share Offering
Keir Starmer and Micheál Martin Coordinate Response to Northern Ireland Violence
NHS Prepares for Major Disruption as Resident Doctors Announce Four-Day Strike
Bank of England Expected to Hold Rates as Energy Costs Complicate Inflation Outlook
Britain Moves to Ban Under-16s From High-Risk Social Media Platforms and AI Chatbots
UK Economy Contracts as Middle East Conflict Weighs on Growth
Defence Secretary John Healey Resigns Over Military Spending Dispute With Treasury
Prime Minister Keir Starmer Faces Leadership Crisis After Senior Cabinet Resignations
NHS Trust Secures Funding for AI Tool to Detect Heart Failure Earlier
Government Unveils £4.5 Billion Investment Plan for Walking and Cycling Infrastructure
Nationwide Reports UK House Prices Falling as Borrowing Costs Remain Elevated
Centre for Social Justice Says Two Million Britons Are Using Illegal Loan Sharks
UK Carmakers Warn EU Local Content Rules Could Damage British Manufacturing
UK Government Imposes Emergency Ban on Seven Potent Synthetic Opioids
Royal Navy Completes Major North Atlantic Anti-Submarine Exercise Off Norway
NHS Figures Show Nearly 3,000 Patients a Day Receiving Care in Hospital Corridors
CBI Cuts UK Growth Forecast as Middle East Tensions Drive Inflation Risks Higher
Dan Jarvis Appointed UK Defence Secretary Following Major Government Reshuffle
University College London Study Links Physical Punishment to Higher Risk of Bullying
East Midlands Railway Unveils First Refurbished Train in £60 Million Modernization Programme
RNLI Issues National Water Safety Appeal Ahead of Expected Heatwave
Climate Change Raises Subsidence Risks for Millions of Homes Across Southeast England
Manchester Advances Plans for Underground Piccadilly Station With £1 Million Funding Commitment
Anti-Immigration Violence Continues in Belfast Amid Heightened Security Concerns
UK Law Locks Great British Railways Into Public Ownership
×