Sam Bankman-Fried’s lawyers can visit him in jail on a daily basis, a U.S. district court ruled Wednesday. The FTX founder will go on trial from Oct. 2 for multiple fraud charges related to the collapse of the cryptocurrency exchange in November. Meanwhile, the company’s new CEO is attempting to revive the platform by selling its crypto holdings.
See related article: Sam Bankman-Fried pleads not guilty to misusing customer funds
- Granted permission via a court order, Bankman-Fried’s lawyers can now “take unlimited advantage of the legal visitation hours” at the Metropolitan Detention Center in New York where he is being held.
- Another court order said the U.S. government will allow Bankman-Fried access to certain documents related to his upcoming trial. He is also now allowed access to an internet-enabled computer.
- Bankman-Fried was jailed Aug. 11 for witness tempering. That followed his initial arrest in the Bahamas in December 2022 on multibillion-dollar fraud charges related to the failure of the FTX exchange. He maintains his innocence and has pleaded not guilty to all the 13 charges brought against him.
- Meanwhile, FTX — now led by corporate restructuring expert John J. Ray III — is trying to sell, stake and hedge the exchange’s US$3 billion of crypto holdings.
- FTX lawyers said in a motion filed Wednesday that they are selling the assets in the hope of “maximizing the return to creditors and promoting an equitable distribution of funds.”
- In a separate motion, FTX requested that Galaxy Asset Management — a digital asset company led by investment banker Mike Novogratz — act as an advisor in the process. Galaxy revealed in November that it has nearly US$77 million in cash and digital assets tied up in FTX.
- The Wall Street Journal reported in late June that the failed crypto company is now mulling over a revival.
See related article: Why FTX deserves a second chance