Cryptocurrency Entrepreneur Sam Bankman-Fried Faces Judge Over Use of Encrypted Messaging Applications Although while on Bail

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Cryptocurrency Entrepreneur Sam Bankman-Fried Faces Judge Over Use of Encrypted Messaging Applications Although while on Bail

The  United States Department of Justice (DOJ) began looking into charges of market manipulation in August 2021 and opened an investigation against the digital currency exchange FTX Trading Ltd likewise as the company’s founder Sam Bankman-Fried. Throughout the course of the inquiry, Bankman-Fried was detained and placed under custody; he faces numerous charges, one of which is the fact that of aiding and abetting illicit trade. To be able to stay out of prison, he agreed to pay a bail bond of $250 Million, which at the time was the highest amount in the annals of United States history.

Concerns have been raised regarding whether or not Bankman-Fried would comply with the terms of his release because of  the fact that he used encrypted chat applications while out on bail. The Department of Justice indicated that his use of Signal and other applications constitutes a danger to the present investigation because it may impair the agency’s capacity to obtain possible evidence. The argument was according to the fact that the applications may prevent the Government from accessing potential evidence.

As a result to these concerns, the attorney for Bankman-Fried will soon be proposing a revised bail package to Judge Kaplan. This new bail package is anticipated to contain more stringent monitoring mechanisms to secure that the defendant complies with the terms of his release. The defense attorney has contended that Bankman-usage Fried’s of encrypted messaging applications was not done with the intention of obstructing justice but rather with the intention of maintaining touch with previous coworkers and employees.

The case sheds attention on the difficulties that law enforcement authorities have when trying to investigate and prosecute crimes using digital currencies, which sometimes include intricate technological hurdles and the use of encryption to be able  to sustain personal anonymity. It is possible that we will see further instances similar to this one in the future as the usage of digital currencies persists to boost. This raises complications about how the legal system can properly govern and oversee new technologies like digital currencies and blockchain.


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