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Sam Bankman-Fried’s Super Bowl VPN Use Prompts Government Concern
U.S. prosecutors worry he could use the privacy tool to access foreign crypto sites or the dark web while on bail.
Sam Bankman-Fried, founder of collapsed crypto exchange FTX, has been using a virtual private network (VPN) to access the internet, U.S. prosecutors have said, potentially prompting a further clampdown on his bail conditions.
After learning he had used the privacy tool twice over recent weeks, “the Government promptly informed defense counsel and raised concerns about the defendant’s use of a VPN,” said a letter from the U.S. attorney Danielle Sassoon to Judge Lewis Kaplan, dated Feb. 13.
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VPNs allow internet users to mask their whereabouts, which means the government can’t see what websites or data they access. Though they can be used benignly, they can also be used to access foreign crypto sites that block U.S. users and covertly access the dark web, Sassoon's letter said.
In a response dated Feb. 14, Bankman-Fried’s attorney Mark Cohen said he had the VPN to watch playoffs in the National Football League (NFL), and the Super Bowl, via an international subscription. Cohen said he's willing to allow a “reasonable” bail condition on VPNs, and that Bankman-Fried won't use one in the interim.
The court has already restricted Bankman-Fried's ability to contact FTX employees using ephemeral messaging services like Signal.
Bankman-Fried was charged in December with multiple counts of fraud following the collapse of his crypto exchange FTX. He has pleaded not guilty and been released on bail.
Read more: Judge Bans Sam Bankman-Fried From Contacting FTX Employees and Using Signal
Jack Schickler
Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He previously wrote about financial regulation for news site MLex, before which he was a speechwriter and policy analyst at the European Commission and the U.K. Treasury. He doesn’t own any crypto.
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Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
What to know:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
