International

Sam Bankman-Fried faced security threats at his parents’ home, lawyers say

FTX’s collapse took an allegedly dangerous turn this week, as lawyers for founder Sam Bankman-Fried claimed a driver crashed a car into the barricade at his parents’ home and the occupants of the car made threatening statements.

According to the letter, which was sent by Bankman-Fried’s attorneys to US federal judge Lewis Kaplan on Thursday, a driver recently crashed a black car into the metal barricade in front of the home in Palo Alto, California, where he currently resides under arrest. domiciliary.

Three unidentified men allegedly got out of the vehicle and told a security guard something to the effect of, “You can’t keep us out,” before driving off. The date of the alleged incident was not specified in the letter.

Bankman-Fried was released by a New York judge via a $250 million bail deal on December 22, following his arrest in the Bahamas and extradition to the United States the previous week. The former FTX chief executive has moved in with his parents in Northern California and remains under house arrest while his trial progresses.

The disgraced cryptocurrency mogul hired law firm Cohen & Gresser to defend him against charges brought by the US Department of Justice following the collapse of FTX in November. Mark Cohen, who filed the letter with his fellow attorney Christian Everdell, previously defended former Jeffrey Epstein associate Ghislaine Maxwell.

According to the New York Post, the cost of insuring the 3,000-square-foot home, estimated to be worth between $3 million and $4 million, near Stanford University is around $10,000 a week. Bankman-Fried’s parents reportedly hired a private security company for 24/7 protection.

His lawyers have fought to keep the names of the bond co-signers (other than their parents) private, citing security concerns. In a separate letter to Judge Kaplan, the lawyers claimed that her parents had received a “constant stream” of threatening correspondence, some threatening physical harm. Several publications have asked the court to reveal the names.

“Given the high profile of this case and the extraordinary media attention it is receiving, it is reasonable to assume that non-parental guarantors will also face significant privacy and security concerns if their identities are revealed,” Bankman-Bankman’s attorneys wrote. Fried.

FTX was one of the most popular cryptocurrency exchanges in the world until early November, when it faced a liquidity crisis, apparently due to a lack of funds linked to trading losses suffered by its sister company, Alameda Research. Both companies declared bankruptcy soon after.

Bankman-Fried has been charged with eight counts of fraud and conspiracy by the US Department of Justice, along with charges from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). . He pleaded not guilty to the Justice Department charges earlier this month.

Stay on top of crypto news, get daily updates in your inbox.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button