KEY POINTS

  • Bankman-Fried was at the court Thursday after prosecutors discovered he used a VPN
  • Prosecutors urged the court to broadly restrict SBF's access to internet and electronic devices
  • Judge Kaplan did not yet make a final decision on the prosecutor's proposal

Judge Lewis Kaplan, the senior federal judge handling the controversial case of former FTX CEO Sam Bankman-Fried, has seemingly suggested the crypto mogul should be denied access to electronic devices and the internet as part of the condition on his bail.

He reportedly hinted at it during a court hearing Thursday.

"Several times, Judge Lewis Kaplan seemed to suggest that Sam Bankman-Fried should be denied access to the internet and electronic devices," NPR correspondent David Gura said in a Twitter thread, adding that the judge "pointed out it is not guaranteed to pre-trial detainees who aren't living with their parents in Palo Alto."

In a letter submitted Wednesday, prosecutors tried to convince the court to broadly restrict Bankman-Fried from using computers, cell phones, tablets or the internet, with few exceptions such as the use of Zoom to talk to his legal team, the use of a device to review items in the discovery and the use of a mobile phone for calls and messaging.

"We have to move beyond the Whac-A-Mole approach," Assistant U.S. Attorney Nicolas Roos said during the hearing, reported Matthew Russell Lee of Inner City Press. "We need a clear rule about the defendant's use of devices and the internet."

But it appeared that Judge Kaplan found the restrictions were light and questioned the prosecutors why they were not asking for his bail to be revoked, telling them, "You're putting a lot of trust in him."

The judge also raised concern about Bankman-Fried's access to his parents' electronic devices, calling them a "garden of electronic devices" with access to the internet.

However, Bankman-Fried's attorney, Marc Cohen, argued the embattled crypto mogul needed access to the internet to review items related to his case and that his client was "literally on trial for his life."

Judge Kaplan did not yet make a final decision on the prosecutor's proposal despite potential violations of his bail conditions. Instead, he requested the defense and prosecution to work on an agreement that resolves his concerns and proposed hiring a tech consultant to advise him.

The federal judge clarified that the hearing was not held to revoke Bankman-Fried's bail but he did not discount the possibility, saying, "it could get there, conceivably."

Bankman-Fried was at the court on Thursday after prosecutors discovered he used a virtual private network (VPN).

Former FTX Chief Executive Sam Bankman-Fried exits the Manhattan federal court in New York
Reuters