bail

Crypto.com customer accused of $7M spending spree granted bail

The judge said that imprisonment wasn’t necessary because Jatinder Singh couldn’t flee Australia without his Indian passport.

The Crypto.com customer who was accidentally sent $6.95 million from the exchange in 2021 and then allegedly went on a spending spree has been granted bail in Australia despite $2 million funds still unaccounted for.

In the Victorian County Court, prosecutors on March 20 tried to convince the judge that imprisonment would be the only way to ensure that Jatinder Singh would not flee the country.

The blunder by Crypto.com came about when a Bulgarian-based employee accidentally transferred $6.95 million to his account instead of what was meant to be a $100 refund in May 2021. The Melbourne man is alleged to have bought four houses and a car with the funds, along with sending a portion overseas.

Prosecutors argued that Singh is financially motivated to flee the country because only $4.9 million has been recovered, according to a report from the Herald Sun.

The theft charges of Singh and Manivel are being dealt with by the Victorian County Court. Source: Country Court of Victoria

Of the missing $2 million, over $1.45 million is believed to have been shifted offshore to Malaysia, the court heard.

Senior Constable Conor Healy told the judge that Singh “may have access to the outstanding money that has not been recovered yet,” while prosecutor Peter Botros argued that Singh posed an “unacceptable” flight risk because he was living without a visa, had no family in Australia and was unemployed prior to his arrest.

However, Judge Daniel Holding didn’t think this was enough to put Singh behind bars. He instead explained that confiscating Singh’s Indian passport and preventing him from applying for a new one at the Indian Embassy would be sufficient:

“If there is a condition that he not have a passport or he not apply for a passport … how does he manage to flee the country?”

Singh is facing a series of theft charges alongside his partner, Thevamanogari Manivel, who is the owner of the bank account to which the funds were transferred.

Both pleaded not guilty to the charges. They continue to claim that they rightfully won the $7 million through a Crypto.com contest.

Related: Failed exit? Traders complain Crypto.com reversed profitable LUNA transactions

While the incident occured in May 2021, it was not discovered until an annual audit in December 2021.

The Singaporean-based cryptocurrency exchange has since launched civil action in the Victorian Supreme Court to recover the losses.

The Victoria Supreme Court h ruled that the funds must be returned to the company.

SBF lawyers to pay for technical expert to aid judge on bail terms

The judge overseeing Sam Bankman-Fried’s fraud case wants some help navigating the world of encrypted messaging, privacy apps, and virtual private networks.

Attorneys working on behalf of former FTX CEO Sam Bankman-Fried have agreed to pay for a security expert to assist the federal judge overseeing his fraud case in navigating modern encryption technology to aid in possibly modifying Bankman-Fried’s bail terms.

Bankman-Fried lawyers Christian Everdell and Mark Cohen sent a letter to Judge Lewis Kaplan on Feb. 21 agreeing with his proposal for a technical professional to aid him.

According to the letter, “the defense has already begun researching and contacting possible experts and anticipates being able to propose one or more potential candidates to the court by the end of the week.”

Judge Kaplan suggested at a bail hearing last week following a tightening of bail terms when it was discovered that Bankman-Fried had been accessing the internet using a VPN (virtual private network).

A VPN obscures and encrypts a user’s internet traffic and is often used to change internet (IP) addresses, to add a layer of security to communications or to access censored content in autocratic regimes.

The judge has been trying to achieve a balance between letting Bankman-Fried access communication channels to prepare his defense and the potential misuse of messaging apps and privacy software.

Judge Kaplan temporarily banned Bankman-Fried from using a VPN or any encrypted messaging apps until his bail terms are settled.

Related: Sam Bankman-Fried may no longer be allowed to play League of Legends

The technical expert will help the judge navigate issues regarding encrypted messages, privacy-focused messaging apps and VPNs.

Bankman-Fried and his attorneys claim he used the VPN on two occasions, to watch the NFL playoffs on Jan. 29 and to watch the Super Bowl on Feb. 12.

Prosecutors have asked for strict bail terms limiting Bankman-Fried’s access to the internet and messaging platforms. They also alleged that VPN use “raised several potential concerns” regarding thepotential access of crypto platforms that have blocked United States users.

FTX’s Bankman-Fried could ‘conceivably’ get bail revoked, says judge

A federal judge said there was “probable cause” to believe that SBF engaged in activities that could land him in jail.

Former FTX CEO Sam Bankman-Fried could “conceivably” have his bail revoked after a federal judge said there was “probable cause” to believe he may have engaged in attempted witness tampering. 

In the Feb. 16 hearing on Bankman-Fried’s bail conditions, Judge Lewis Kaplan said there was “probable cause to believe that he [Bankman-Fried] has committed or attempted to commit a federal felony while on release, namely witness tampering” according to multiple reports.

Kaplan suggested that this could “conceivably” see the FTX founder sent back to jail until his trial date in October.

Kaplan noted however that the Feb. 16 hearing was not a bail revocation hearing, but added that it “could get there, conceivably.”

“Why am I being asked to turn him loose in this garden of electronic devices?” Kaplan reportedly said.

Law Professor Richard Painter echoed the sentiment in a Feb. 17 tweet, suggesting that witness tampering might not be a good idea given his current circumstances:

“Hey Crypto Bro: Witness tampering while out on bail is a great way to go right back to jail.”

On Feb. 15, prosecutors asked Judge Kaplan to further restrict Bankman-Fried’s device usage to a single monitored computer and cellphone in a letter.

Prosecutors had pointed to Bankman-Fried’s recent device usage as cause for concern, seeking to further restrict and monitor his usage “with limited exceptions.”

During the hearing, Judge Kaplan suggested that it was naive to believe that these restrictions would stop him from using the internet, given that Bankman-Fried is living with his two parents, who both have laptops and cellphones.

Prosecutor Nicholas Roos seemingly agreed, suggesting there may not be a “great solution,” which prompted Kaplan to imply that revoking Bankman-Fried’s bail could eliminate these risks, noting:

“There is a solution, but it’s not one anybody has proposed yet.”

Bankman-Fried’s lawyers however argued that they need him to be able to work on his defense, claiming: “We cannot go through these extensive financial records without him.”

Related: Judge allows release of identities of guarantors behind Sam Bankman-Fried’s bail

The former FTX CEO has been prohibited from using certain messaging apps as of Feb. 9 after he was found to have contacted potential witnesses. He was also temporarily banned from using a VPN after prosecutors accused him of using it on two occasions on Jan. 29 and Feb. 12.

The VPN ban was not extended in the Feb. 16 hearing.

Many from the crypto community have expressed disbelief that Bankman-Fried is yet to have his bail revoked under the circumstances.


FTX’s Bankman-Fried could ‘conceivably’ have bail revoked, says judge

A federal judge said there was “probable cause” to believe that SBF engaged in activities that could land him in jail until his trial in October.

Sam Bankman-Fried could “conceivably” have his bail revoked after a federal judge said there was “probable cause” to believe the former FTX CEO may have engaged in attempted witness tampering. 

During a Feb. 16 hearing on Bankman-Fried’s bail conditions, Judge Lewis Kaplan said there was “probable cause to believe that he [Bankman-Fried] has committed or attempted to commit a federal felony while on release, namely witness tampering,” according to multiple reports.

Kaplan suggested that this could “conceivably” see the FTX founder sent back to jail until his trial in October.

Kaplan noted however that the Feb. 16 hearing was not a bail revocation hearing, but added that it “could get there, conceivably.”

“Why am I being asked to turn him loose in this garden of electronic devices?” Kaplan reportedly said.

Law professor Richard Painter echoed the sentiment in a Feb. 17 tweet, suggesting that witness tampering might not be a good idea given his current circumstances:

“Hey Crypto Bro: Witness tampering while out on bail is a great way to go right back to jail.”

On Feb. 15, prosecutors asked Judge Kaplan to further restrict Bankman-Fried’s device usage to a single monitored computer and cellphone.

Prosecutors pointed to Bankman-Fried’s recent device usage as cause for concern, seeking to further restrict and monitor his usage “with limited exceptions.”

During the hearing, Judge Kaplan suggested that it was naive to believe that these restrictions would stop him from using the internet, given that Bankman-Fried is living with his two parents, who both have laptops and cellphones.

Prosecutor Nicholas Roos seemingly agreed, suggesting there may not be a “great solution,” which prompted Kaplan to imply that revoking Bankman-Fried’s bail could eliminate these risks, noting:

“There is a solution, but it’s not one anybody has proposed yet.”

Bankman-Fried’s lawyers, however, argued that they need him to be able to work on his defense, claiming: “We cannot go through these extensive financial records without him.”

Related: Judge allows release of identities of guarantors behind Sam Bankman-Fried’s bail

The former FTX CEO has been prohibited from using certain messaging apps since Feb. 9, after he was found to have contacted potential witnesses. He was also temporarily banned from using a VPN after prosecutors accused him of using it on two occasions, on Jan. 29 and Feb. 12.

The VPN ban was not extended at the Feb. 16 hearing.

Many both in and out of the crypto community have expressed disbelief that Bankman-Fried is yet to have his bail revoked under the circumstances.


Major media want answers: Who guaranteed Bankman-Fried’s $250M bail?

The media’s lawyers argued the public’s right to know Bankman-Fried’s sureties outweighed their privacy and safety rights, but Bankman-Fried’s lawyers strongly disagreed.

Eight major media companies — including Bloomberg, the Financial Times and Reuters — have demanded public disclosure of the two individuals responsible for guaranteeing FTX former CEO Sam Bankman-Fried’s $250 million bond. 

In a Jan. 12 letter addressed to New York District Court Judge Lewis Kaplan, attorneys from Davis Wright Tremaine LLP — acting on behalf of the media giants — argued that “the public’s right to know Bankman-Fried’s guarantors outweighed their privacy and safety rights.”

“The public […] has an interest in knowing who it is that provided Mr. Bankman-Fried with financial backing.”

“[Particularly] given Mr. Bankman-Fried’s close relationships with leaders of the financial industry, investors, prominent Silicon Valley billionaires, and elected representatives,” they argued.

The other media organizations looking to persuade the judge to unseal the identities of Bankman-Fried’s guarantors are the Associated Press, CNBC, Dow Jones, Insider and the Washington Post.

Screenshot of the letter sent to Judge Kaplan. Source: Davis Wright Tremaine LLP

The attorneys also argued that given Bankman-Fried’s close ties to “some of the most wealthy, powerful, and politically connected individuals” on the planet, such non-disclosure could possibly undermine “public confidence in our government institutions and political leaders.”

The media lawyers also argued that while a 2020 case involving Jeffrey Epstein confidant Ghislaine Maxwell saw her bond guarantors sealed, Bankman-Fried’s alleged financial crimes are not nearly as serious as what Maxwell was accused of:

“While Mr. Bankman-Fried is accused of serious financial crimes, a public association with him does not carry nearly the same stigma as with the Jeffrey Epstein child sex trafficking scandal.”

The letter came in response to the court’s decision on Jan. 3 to approve Bankman-Fried’s request to redact the names and identifying information of his two non-parental bail sureties.

According to a Jan. 12 report from Reuters, Bankman-Fried’s lawyers previously argued that Bankman-Fried’s sureties should be kept under wraps as Joseph Bankman and Barbara Fried — the parents and co-signers of Bankman-Fried’s $250 million bond — have received ongoing physical threats since FTX’s catastrophic collapse in early November.

Related: Sam Bankman-Fried: ‘I didn’t steal funds, and I certainly didn’t stash billions away’

If the guarantor’s names were revealed, there would be a “serious cause for concern” for the safety and welfare of those two people, Bankman-Fried’s lawyers argued.

The names of Bankman-Fried’s guarantors aren’t the only names mainstream media have asked to be disclosed publicly.

Cast your vote now!

Several media outlets also called on Delaware-based Judge John Dorsey overlooking FTX‘s bankruptcy case to disclose the names of up to nine million customers entangled in the court proceedings.

However, bankruptcy judge John Dorsey has ruled on Jan. 11 to keep creditor information private for the time being.

Update Jan. 13, 3:45 am UTC: Added additional quotes in from Davis Wright Tremaine LLP’s letter addressed to Judge Lewis Kaplan.

Sam Bankman-Fried’s life on bail: Armed guards, daily jogs and gawkers

Compared to his prison accommodations in the Bahamas, the former billionaire appears to be living a pretty decent life while under house arrest.

Sam Bankman-Fried has reportedly been leading a decent lifestyle while under house arrest in his parent’s home in Palo Alto — with daily jogs, a security detail, and a couple of in-home visits.

However, it’s not exactly a life of endless luxury either. The former FTX CEO is reportedly required to wear an ankle monitor and is only allowed to leave the house under certain circumstances, among other restrictions.

The aforementioned Palo Alto home, located on the border of Stanford University’s campus, is understood to be a $4 million property equipped with five bedrooms, three bathrooms and a pool, according to real estate listings. 

The property has had to be barricaded on both ends, however, as Bankman-Fried has reportedly faced death threats, while his home has turned into something of a tourist attraction for curious onlookers.

His family is shelling out $10,000 a week for a private security firm, according to a Dec. 27 article from the New York Post.

The home Sam Bankman-Fried is reported to be confined to. Source: Google Maps.

As part of the Dec. 22 bond agreement, Bankman-Fried is required to wear an ankle bracelet, has been forced to surrender his passport and is also required to seek approval for any transactions in excess of $1,000. He is also not allowed to possess a firearm, any other weapon or “destructive device”.

He is only able to leave the property for exercise, substance abuse treatment or mental health treatment — something he is understood to have taken up — with multiple reports indicating he has been going for daily jogs with his security detail in tow.

Related: Bankman-Fried may enter plea in NY federal court next week before Judge Lewis Kaplan

While this is still a far cry from the Bahamas penthouse he was previously living in, it still appears far better than the conditions of his cell in Fox Hill prison in the Bahamas. 

That being said, some in the crypto community have been vocal about Bankman-Fried’s release on bail, particularly considering he was able to do so without any upfront payment.

Instead, hs parents’ property has been put up as security for the record $250 million bond, after Bankman-Fried claimed to only have $100,000 in his bank account following the collapse of FTX.

He’s reportedly already been visited by journalist Michael Lewis, author of the popular trading-focused books The Big Short, Liar’s Poker and Flash Boys, who reportedly has been embedded with SBF for over months as part of a book project. 

On Dec. 28, cryptocurrency vlogger Tiffany Fong revealed on Twitter she had visited Bankman-Fried in his parent’s home for a “conversation” just the night before.

Fong was one of the first to interview Bankman-Fried after the exchange went bankrupt in November, and is expected to write about the meeting after her holiday.

Bankman-Fried has denied criminal liability numerous times since the collapse of FTX. He is set to appear in a New York federal court on Jan. 3 to be arraigned on charges of wire fraud and conspiracy.

SBF reportedly files new bail application in the Bahamas Supreme Court

Bahamas media reports that Sam Bankman-Fried lodged a new bid for bail just two days after a judge denied his previous application, calling the FTX founder a flight risk.

Sam Bankman-Fried, the jailed founder of bankrupt cryptocurrency exchange FTX, has reportedly filed a new application for bail in the Bahamas Supreme Court following his previous unsuccessful bid for release.

Local media on Dec. 15 reported that the founder submitted the application and that it would be heard before the court in just over one month’s time, on Jan. 17. However the report did not cite any sources.

Previously, on Dec. 13, Bankman-Fried’s lawyers had argued for him to be let out on bail set at $250,000 as he had no prior convictions and was suffering from depression and insomnia. The presiding judge denied bail, calling the crypto executive a flight risk.

Bankman-Fried is remanded at Fox Hill Prison, the only jail in the Bahamas. A 2021 U.S. State Department report said conditions at Fox Hill were “harsh” and overcrowded with poor medical care, sanitation and nutrition. Correctional officers were alleged to physically abuse detainees.

Related: FTX Bahamas co-CEO Ryan Salame blew the whistle on FTX and Sam Bankman-Fried

Extradition to the U.S. is on the cards as the Bahamian government has said it will “promptly” process any request. The FTX founder faces eight U.S. charges, including money laundering, wire fraud, and securities fraud.

The slew of charges could see Bankman-Fried land in jail for 115 years, but legal commentators have told Cointelegraph there is a “lot to play out,” saying the case could take years to resolve.