Judge Signals Jail Time if Bankman-Fried's Internet Access Is Not Curbed

Sarah Blesener writes via The New York Times: Since his arrest two months ago, Samuel Bankman-Fried, the disgraced cryptocurrency executive, has been physically confined to the Palo Alto home of his parents, under the force of a $250 million bail package. But he has roamed largely unfettered in the wilderness of the internet: conducting interviews, posting narratives, making calls on encrypted apps and using a virtual private network, a web tool that allows users to conceal data and visit websites without detection. Those unrestrained days may soon be over. On Thursday, a federal judge overseeing Mr. Bankman-Fried's multibillion-dollar fraud case signaled a willingness to jail him for his persistent testing of his confinement's boundaries, going beyond what prosecutors had asked. "Why am I being asked to turn him loose in this garden of electronic devices?" the judge, Lewis A. Kaplan, asked prosecutors, describing the well-wired home of Mr. Bankman-Fried's parents, both professors at Stanford Law School. No new conditions were set during Thursday's hearing, the latest of several hearings, held in federal court in Manhattan, to consider more restrictive bail terms. Judge Kaplan asked both sides to prepare concrete proposals that would limit and monitor Mr. Bankman-Fried's access to the internet without inhibiting his ability to participate in his defense. Federal prosecutors in Manhattan have charged Mr. Bankman-Fried with orchestrating widespread fraud at FTX, the cryptocurrency exchange he founded, accusing him of misappropriating billions of dollars of customers' money. Prosecutors said he used the funds to finance lavish real estate purchases, political contributions and investments in other companies. After he was charged in December, Mr. Bankman-Fried was released on bail with the requirement that he wear an ankle monitor and stay confined to his parents' house. [...]

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