Prosecutors are asking the court to prevent Sam Bankman-Fried from contacting colleagues at FTX

US prosecutors have asked a New York judge to ban Sam Bankman-Fried from contacting former colleagues at FTX and from using encrypted messaging apps, alleging that the crypto company’s founder communicated with potential witnesses in his impending criminal trial.

In a letter sent to court on Friday, the government alleged that Bankman-Fried was in “direct contact” via messaging app Signal with the bankrupt cryptocurrency exchange’s general counsel, who may be asked to take a stand in the case against his former boss.

The letter did not name the general counsel, but the role is filled by former Sullivan and Cromwell attorney Raine Miller, who joined FTX US in 2021.

Bankman-Fried alleged that Miller, Sullivan, and Cromwell forced him to file for bankruptcy, which they deny. The law firm worked for FTX and has since been appointed lead counsel in a bankruptcy case.

Bankman-Fried wrote in a Jan. 12 blog post: “S&C and [Miller] The core parties were strong-armed and threatening to name their self-selected candidate for CEO of FTX – including the solvent entity of FTX US – who then filed for Chapter 11 and selected S&C as advisor to the debtor entities.”

The government said Friday that Bankman Fried, who was released on bail in December after extradition from the Bahamas to face eight criminal charges in the United States, contacted FTX’s general counsel on January 15 via Signal, as well as via email.

Prosecutors allege he wrote, “I’d really like to reconnect and see if there’s a way for us to have a constructive relationship, use each other as resources when possible, or at least check things out with each other” and contact the former and current FTX. employees.

Assistant US Attorney Danielle Sasson said Friday: “Defendant’s request to ‘check things out with each other’ suggests an attempt to influence Witness 1’s potential testimony, and the plea for a ‘constructive relationship’ implies that Witness 1 should align with the plaintiff on him “.

Sasson added that the government has already interviewed FTX’s general counsel, “who has first-hand knowledge of the defendant’s conduct.”

Bankman-Fried had been in contact with FTX’s general counsel in the run-up to the company’s collapse in November, Sasson said, and ordered a divestment of FTX’s Alameda trading business to allow the exchange’s clients to make withdrawals.

It also asked Judge Lewis Kaplan to amend Bankman-Fried’s bail terms to ban him from using encrypted or ephemeral messaging platforms including Signal. It alleged that the defendant used such apps to hide communications from law enforcement, and put messages on Signal and Slack to disappear after 30 days while on FTX.

The government said it learned from the former Alameda president Caroline Ellisonwho reached an agreement with prosecutors last month and is expected to testify against Bankman-Fried, said the former FTX boss had chosen to set his communications to automatic deletion because he understood the information could be used in a legal case.

Sasson said the automatic deletion of FTX, Alameda Slack and Signal communications “has hindered the government’s investigation.”

Miller’s attorney declined to comment. On Saturday, attorneys for Pinkman-Fried told the court that the government had tried to portray their client “in the worst possible light,” and they objected to plaintiffs’ characterization of the defendant’s communications. Judge Kaplan ordered the plenum adjourned to court.