- Court amended Bankman-Fried’s bail terms to stop him from contacting FTX, Alameda employees
- The amount invested in crypto companies dropped 91% in January 2023 year-on-year
Ex-FTX CEO Sam Bankman-Fried’s counsel Mark Cohen is negotiating his client’s bail terms with US prosecutors. He has cited “outstanding issues” related to the conditions that need resolving, a court filing shows, CoinDesk reported.
Influence or support?
The prosecution accused Bankman-Fried of trying to influence the future testimony of former and current employees of FTX and its sister company Alameda Research, which is also bankrupt. Bankman-Fried contacted Ryne Miller, FTX US general counsel, which the court took issue with.
Bankman-Fried’s attorney said his client needed contact with former employees because they were a source of personal support. They include George Lerner, FTX’s payroll therapist.
The court amended Bankman-Fried’s bail terms to stop him from contacting current or former FTX or Alameda employees. He has also been prohibited from using Signal and other encrypted chat apps. His attorney remains optimistic, writing in a letter to the court on February 2:
The parties would like to continue these discussions, which we are optimistic will lead to an agreement between the parties in the next few days and eliminate the need for further litigation.
The court scheduled a hearing on bail terms for February 9. Cohen had asked to reschedule the hearing, which was originally supposed to take place on February 7.
Ripple effect
FTX’s collapse has had a pronounced effect on the whole industry, which may only be beginning to make itself felt. On Thursday, shares of crypto bank Silvergate Capital plummeted after Bloomberg published an article reporting that the US DOJ’s fraud unit was investigating their deals with FTX and Alameda.
The amount invested in crypto companies dropped 91% in January 2023 year-on-year according to a CoinDesk analysis. The full effect of FTX’s collapse in November is yet to be felt because it can take months to complete the deals.
The total investments in private crypto startups, including venture capital investments, were only $548 million in January, down from $6 billion in January last year. Most deals this year were for smaller firms. The number of transactions dropped from 166 to 62.
