Federal prosecutors search to bar FTX founder Sam Bankman-Fried (SBF) from utilizing encrypted messaging like Sign. The feds are involved the app might facilitate potential witness tampering.

Prosecutors claimed in a letter to a Manhattan choose that Bankman-Fried‘s overtures to FTX US Normal Counsel Ryne Miller constituted tried witness tampering. The federal government additionally referenced unreleased testimony from former Alameda CEO Caroline Ellison to justify banning SBF.

CNBC studies that in line with the letter, Bankman-Fried wrote to Miller by way of Sign. He reportedly requested for a “constructive relationship” and prompt utilizing one another as assets. Prosecutors allege that along with Miller, SBF contacted “present and former FTX staff.” The federal government needs Bankman-Fried’s entry to Sign — and different encrypted messaging platforms — minimize off to “stop obstruction of justice.”

Ex-Alameda CEO Caroline Ellison testified that Bankman-Fried indicated “many authorized circumstances activate documentation, and it’s harder to construct a authorized case if data is just not written down or preserved.”

Bankman-Fried has pleaded not responsible to a litany of fraud-related costs. After being launched to his mother or father’s custody on a $250 million bond, he’s due again in court docket in October. CNBC mentioned he and his representatives have declined to touch upon the state of affairs.

The end result of the prosecutors’ request concerning Sign will seemingly decide how the crypto group and authorities view encrypted messaging software program in related circumstances sooner or later. It stays to be seen whether or not this case will lead to a brand new understanding of witness tampering associated to encrypted messaging expertise.