Get All Access for $5/mo

Federal Prosecutors: Ban Sam Bankman-Fried From Signal Over Witness Tampering Fears Prosecutors cited previously unreleased testimony from Alameda CEO Caroline Ellison as part of their justification for the ban.

By Steve Huff

lev radin | Shutterstock

Federal prosecutors seek to bar FTX founder Sam Bankman-Fried (SBF) from using encrypted messaging like Signal. The feds are concerned the app could facilitate possible witness tampering.

Prosecutors claimed in a letter to a Manhattan judge that Bankman-Fried's overtures to FTX US General Counsel Ryne Miller constituted attempted witness tampering. The government also referenced unreleased testimony from former Alameda CEO Caroline Ellison to justify banning SBF.

CNBC reports that according to the letter, Bankman-Fried wrote to Miller via Signal. He reportedly asked for a "constructive relationship" and suggested using each other as resources. Prosecutors allege that in addition to Miller, SBF contacted "current and former FTX employees." The government wants Bankman-Fried's access to Signal — and other encrypted messaging platforms — cut off to "prevent obstruction of justice."

Ex-Alameda CEO Caroline Ellison testified that Bankman-Fried indicated "many legal cases turn on documentation, and it is more difficult to build a legal case if information is not written down or preserved."

Bankman-Fried has pleaded not guilty to a litany of fraud-related charges. After being released to his parent's custody on a $250 million bond, he is due back in court in October. CNBC said he and his representatives have declined to comment on the situation.

The outcome of the prosecutors' request regarding Signal will likely determine how the crypto community and authorities view encrypted messaging software in similar cases in the future. It remains to be seen whether this case will result in a new understanding of witness tampering related to encrypted messaging technology.

Steve Huff

Entrepreneur Staff

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Growing a Business

How to Determine The Ideal Length of Your Marketing Emails Your Customers Will Actually Read

Wondering how long your marketing emails should be? Here's what consumers say — so you can send them exactly what they like.

Business News

A Former Corporate Lawyer Now Makes Six Figures on YouTube — Here's How She Does It

Here are the secrets to starting and growing a successful YouTube channel, according to a YouTuber with millions of subscribers.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

New Southwest Airlines Major Investor Wants to Force Out CEO, Slams Company's 'Stubborn Unwillingness to Evolve'

Elliot Investment Management announced a $1.9 billion stake in the Dallas-based Southwest Airlines on Monday and is urging shareholders to vote for new leadership.