US authorities seek to prohibit FTX ex-CEO communication with current FTX employees

The current FTX leadership claims FTX’s former CEO is meeting with the witnesses of the FTX bankruptcy case.

Sam Bankman-Fried (SBF) is a co-founder and former CEO of the FTX crypto exchange. Allegedly, FTX’s former CEO misused the FTX customer’s fund for personal benefits. On 19 Nov 2022, FTX filed for bankruptcy in a US bankruptcy court under the chapter 11 code. Before bankruptcy, FTX co-founder SBF stepped down from the company roles and now he is living with his parents on behalf of a $250 million bail bond. 

Recently a document came to light, which was filed by the FTX exchange’s bankruptcy lawyers. The document revealed that FTX’s former CEO was meeting with some important employees of FTX’s current employee, which is further causing some destruction in the path of bankruptcy proceedings, as a part of the FTX’ fund’s recovery. 

In particular, the document noted that SBF had a meeting with FTXUS’ current General Counsel via email & signal platform, which was a kind of violation of the case.

The Department of Justice (DOJ) had asked United States District Court Judge Lewis Kaplan to ban SBF to prohibit his any kind of communication with any linked witness of the FTX bankruptcy case. 

For them, the Court may release a separate new order to introduce some changes in the $250 million bail bond, so that new restrictions can be easily introduced on the freedom of SBF. 

Bail bond & controversy

Initially, when SBF secured bail on behalf of a $250 million bail bond, many people claimed that SBF was using his power and getting significant support from big players. 

Many FTX creditors raised concerns regarding FTX’s bankruptcy & SBF’s interference in the case. The majority of the people noted that SBF was still engaged in the meeting with powerful people, despite being on bail. 

A few weeks ago, a few law firms urged the bankruptcy court to reveal SBF supporters, who signed to grant the bail as guarantors but SBF lawyers counter-stricken the request & said that it will spoil the privacy of FTX’s former CEO SBF.

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