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.

Editor's Pick

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.

Business News

Sony Pictures Entertainment Purchases Struggling, Cult-Favorite Movie Theater Chain

Alamo Drafthouse originally emerged from bankruptcy in June 2021.


Are Your Business's Local Listings Accurate and Up-to-Date? Here Are the Consequences You Could Face If Not.

Why accurate local listings are crucial for business success — and how to avoid the pitfalls of outdated information.

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Money & Finance

Day Traders Often Ignore This One Topic At Their Peril

Boring things — like taxes — can sometimes be highly profitable.


Want to Be More Productive Than Ever? Treat Your Personal Life Like a Work Project.

It pays to emphasize efficiency and efficacy when managing personal time.