Search Inside Bitcoins

Surveillance Software Successfully Implemented on Sam Bankman-Fried’s parents’ Cell Phones.

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Sam Bankman-Fried
Sam Bankman-Fried

Join Our Telegram channel to stay up to date on breaking news coverage

The case of Sam Bankman-Fried with US prosecutors is among the most closely watched criminal cases in the crypto industry, especially among angry FTX investors. Given the multiple count charges against the ex-CEO, it is safe to conclude the prosecutors would spare him no room for escape. 

In a recent court proceeding, a federal judge approved surveillance software installation on Bankman-Fried’s parents’ cell phones. The prosecutors had requested a review of the embattled CEO’s bail terms to ensure he doesn’t fault the conditions. 

Per the revised bail terms, surveillance software has been implanted on Bankman-Fried parents’ phones to track their daily activities.

Court Approves Surveillance Software on Sam Bankman-Frieds’ Parents’ Phones

Before the surveillance software installation, Bankman-Fried’s lawyers filed a motion to extend his revised bail terms enforcement. The lawyers cited difficulties finding a suitable tracking device for their client’s parents’ cell phones. That is because the device is required to capture a photo of the user every five minutes per the lawyers’ suggestion.

Bankman-Fried’s lawyers, Christian Everdell and March Cohen, stated in the filing that they implemented all bail term conditions except the surveillance device. However, in an April 21 filing at the New York District Court, the attorneys said the surveillance software they got couldn’t take the user’s photo every five minutes, but it has a keystroke logging function. The keystroke logging feature preserves records of all user activity on the cell phone.

Therefore, Lewis Kaplan, the US District judge presiding over the case, approved the software implementation on April 24. The software will monitor all activities on Bankman-Fried parents’ phones, including installation of unauthorized apps, internet browser history, instant messages, and voice and video calls.

According to the recently endorsed memo, Bankman-Fried’s parents will provide a list of apps they use to defense counsel. The defense counsel will then submit the list to the government. 

A technical consultant will review the keystroke logs and screenshots thrice a week at least. These measures will ensure that Sam Bankman-Fried adheres to his bail conditions and does not breach the terms.

Court Reviews Sam Bankman-Fried’s Bail Terms

This ruling comes after complaints about Bankman-Fried’s access to phones and his internet activities. Complaints reached the court that the former FTX CEO might breach his bail terms as he constantly contacted FTX employees and was often active on social media.

Judge Lewis Kaplan reportedly said  Sam Bankman-Fried has a garden of electronic devices with which he accesses the internet while at his Parents’ home. According to reports, the judge had warned that Bankman-Fried might have attempted witness tampering. Previous reports noted that Bankman-Fried contacted FTX’s former general counsel (who serves as witness-1 in the case) in late January. 

Judge Kaplan had earlier proposed on March 3 that Bankman-Fired prohibit Sam Bank-Man Fried from using smartphones, computers, tablets, or any video game platforms and devices that allow chat and voice communication. The judge believed Bankman-Fried’s bail terms were too lenient and may allow him the opportunity to commit a felony.

The court also prohibited Bankman-Fried from using a VPN after prosecutors accused him of using it twice on January 29 and February 12.

Also, a March 28 report revealed that Bankman-Fried’s parents agreed to limit his access to phones and electronic devices. The parents signed affidavits mandating them not to allow prohibited electronic devices into their homes. 

SBF Could Face Long Jail Term If Convicted of Multiple Fraud Charges

Sam Bankman-Fried has been from one court proceeding to another following his arrest in the Bahamas on December 12. The former CEO of the now-bankrupt FTX exchange is facing multiple charges of wire fraud, conspiracy to divert investors’ funds, and money laundering.

Previous reports revealed that Bankman-Fried misappropriated customers’ funds and secretly sent the same to his crypto trading company Alameda Research. On February 22, the FTX co-founder faced additional criminal charges, including illegal political contributions.

The 12-count indictment highlighted details of numerous political donations by Bankman-Fried in violation of federal campaign finance laws. Before the new criminal charges, Bankman-Fried was a prominent donor to Democrats. He donated $39 million during the 2022 midterms, while the co-CEO of FTX Digital Markets, Ryan Salame, contributed $23 million, per reports

In addition, SBF faces several class action lawsuits, accusing him of using billions of dollars in investors’ money to fund speculative investments, charity, and enrich himself. 

Per CNBC’s report, US Attorney Damian Williams said they are working to ensure justice on Bankman-Fried. While he pleads not guilty, sources familiar with the case said Bankman-Fried could face over 40 years in prison if convicted of multiple fraud schemes.

Join Our Telegram channel to stay up to date on breaking news coverage

Read next