•A modification was made to FTX founder Sam Bankman-Fried’s bond agreement on Tuesday, prohibiting him from accessing or transferring funds related to FTX or Alameda Research as a new condition of his bail.
• The request was made by Assistant U.S. Attorney Danielle Sassoon during Bankman-Fried’s arraignment in Manhattan, acting on behalf of the government.
• Judge Lewis A. Kaplan granted the measure after Bankman-Fried pleaded not guilty to the eight criminal charges that include fraud and money laundering..
• The amendment follows activity involving Alameda-linked wallets that took place last week which transferred $1.7 million worth of cryptocurrencies linked to Alameda coin mixers—programs often used to obscure trading activity—according to Arkham Intelligence..
• After reports regarding last week’s transfers began to circulate, Bankman-Fried tweeted for the first time since he was arrested in the Bahamas, denying he was behind the activity that involved Alameda-linked wallets..
On Tuesday, a new requirement was added to Sam Bankman-Fried’s bond agreement, restricting him from accessing or transferring funds related to either of his two businesses, FTX and Alameda Research. This modification is presumably an effort to protect these funds, especially given the current market volatility caused by global health concerns potentially impacting cryptocurrency trading.
With this new condition applied to Bankman-Fried’s bond, it shows that authorities probably anticipate that FTX and Alameda Research may be at risk in connection with any future potential criminal activity. It further demonstrates the importance of safeguarding crypto assets now more than ever.
Details of the Modification to Bond Agreement
The request for modification was prompted by activity involving two wallets that are linked to Alameda Research transferring $1.7 million worth of cryptocurrencies on March 15th and 16th—just days after Bankman-Fried pleaded not guilty in court regarding charges related to alleged unregistered money transmissions in 2020. As part of the modified bond agreement.
Bankman-Fried must now obtain permission from pre-trial services before accessing or transferring funds related to either company—FTX or Alameda Research—for any purpose other than legally required payments such as taxes or debt repayment. Not only that, but he must also provide documentation detailing any transfers exceeding $10,000 that are made from those accounts to outside recipients within 24 hours of making them.
In response to allegations regarding activity involving the two wallets linked to Alameda Research, Bankman-Fried’s attorney released a statement saying “Mr. Bankman-Fried denies any wrongdoing with respect to these transactions…He has been an innovator in his field for many years with a tremendous record of success and integrity…We are confident that when all facts come out it will be clear that he has done nothing wrong”.
Impact of Modification to Bond Agreement on Sam Bankman-Fired and FTX Going Forward
The restriction on access to or transfer of funds related to either FTX or Alameda Research could have serious implications for both companies going forward if they are unable able meet their financial obligations without access to those funds or if they fail to comply with the new requirements outlined in the modified bond agreement.
The modification made by Judge Lewis A. Kaplan on Tuesday puts significant restrictions on Sam Bankman Fried’s access and transfer of funds related to his companies FTX and Alameda Research. It remains unclear what impact these restrictions may have on both organizations going forward; however, it is likely that there will be some financial implications for both parties if they are unable able meet their financial obligations without access to those funds or fail to comply with the new requirements outlined in modified bond agreement moving forward. All eyes are now watching this situation closely.
