FTX News: Regulators Line Up, Bankman-Freed Covers VPN

Cryptocurrency exchange FTX, which is now going through a painful bankruptcy process, continues to attract media attention. Her former boss and mastermind, Sam Bankman-Freed, also constantly gives reasons to talk about himself. This is what has happened in recent days.

Regulators were made to wait

The court suspended consideration of two civil lawsuits by US regulators against Sam Bankman-Fried until the completion of the criminal case of the US Department of Justice, reports Reuters. So the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) will have to wait. Prosecutors argued this as follows: the outcome of the criminal case may affect the complaints of the SEC and SFTC.

In addition, in civil lawsuits, Bankman-Freed can use the same witnesses who will testify in a criminal case and circumvent the rules for the disclosure of evidence.

Bankman-Fried agreed with the court’s decision.

FTX allowed to sell assets

FTX has obtained court approval for the sale of certain investment assets and subsidiaries. But only those that are classified as insignificant (their cost is relatively low compared to the rest).

The liquidators of the exchange filed a petition for the sale of assets on January 18. It said that some investors had expressed a desire to buy back shares of FTX to make it easier to raise additional capital from other investors.

The cumulative sale price of each asset must be less than or equal to $1 million, and the “certified investment value,” which refers to the initial amount paid by FTX to acquire or invest in an asset, must be less than or equal to $5 million. To sell fund assets, the initial committed capital and The aggregate sale price must be equal to or less than $1 million.

Prosecutors don’t like VPNs

While Sam Bankman-Freed awaits trial, he indulges in entertainment. The Justice Department found that he accessed the internet on January 29 and February 12. Presumably to watch the National Football League decider for the 2022 season. It is established that he used a VPN.

The court said in a statement: “VPN allows data to be transferred without detection over a secure, encrypted connection. [и] is a more secure and hidden way to access the dark web. The defense contends that the defendant did not use the VPN for any improper purpose and indicated that he would like the opportunity to discuss the matter.”

Lawyers for Bankman-Fried and U.S. Attorneys have asked the court before February 17 to decide what impact the use of a VPN could have on the conditions of release on bail of the person involved in the case.

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