Prosecutors express concern over FTX co-founder, Sam Bankman-Fried’s potential use of a VPN to conceal his online activities.
A Manhattan judge handling Bankman-Fried’s criminal fraud case also showed apprehension that the defendant could communicate using an old-fashioned secret code to contact witnesses, despite being prohibited from using encrypted messaging apps like Signal.
Judge Lewis Kaplan refused to approve a negotiated agreement between Bankman-Fried and prosecutors, requiring him to stop using Signal and specific apps while only communicating with a specific group of former and current FTX employees.
A prosecutor said in a letter to the judge that the government is in talks with Bankman-Fried’s lawyers to establish mutually acceptable internet ground rules.
The prosecutor added that VPN use raises several potential concerns because it allows access to international cryptocurrency exchanges, data transfers without detection, and offers a covert way to access the dark web.
Bankman-Fried was released on bail in December and has been living in California after being accused of committing fraud at FTX and using customer funds for trading at affiliated hedge fund Alameda Research and personal expenses.
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