In one of the newer episodes from the legal sphere, lawyers representing the former FTX CEO, Sam Bankman-Fried, informally known as SBF, have been given an opportunity till September 1 to request a trial postponement. According to an August 30 thread by Inner City Press, the pointed offer came from Judge Lewis Kaplan. According to the thread, he stated, “If the defendant feels he needs a postponement, they can ask for it,” adding, “I’m not saying I would necessarily grant it. They’d have to demonstrate a need — not just recount the number of documents. There’s got to be more meat on those bones.” To this, SBF’s lawyers admitted to having chosen an aggressive date to clear his name but did not rule out requesting more time due to alleged issues with access to discovery materials.
One of the hearing’s primary focal points was requests from SBF’s lawyers for a temporary release for their client to prepare for his Oct. 3 criminal trial subsequent to Kaplan’s revocation of Bankman-Fried’s bail on Aug. 11. The chief complaint pertains to the inadequate access to the internet and documents related to his case at the Metropolitan Detention Centre in Brooklyn. SBF faces 12 criminal charges scheduled to be dealt with in two trials beginning in 2023 and 2024.
On a parallel note, there seems to be a breach involving a bankruptcy claim by FTX that has led to leaked sensitive information. FTX had more than a million users when it filed for bankruptcy in November 2022. The bankruptcy resulted from an alleged inside job hack of nearly $400 million. The bankruptcy proceeding has been criticized for both its duration and cost–alone February’s legal fees amounted to over $32.5 million. The breach has potentially exposed users’ email addresses, account numbers, unique bankruptcy identifiers, account balances, and more. Kroll, the FTX bankruptcy claims agent, confirmed this leak despite the previous assessment of it being a ‘non-sensitive’ breach. Despite the assurance of passwords and digital assets security, it is prudent for users to keep vigilant for potential fraud and scam attempts using the disclosed information. Phishing emails masquerading as communication from Kroll have already been reported by the user base.
In conclusion, the perceived invincibility around cryptocurrencies may likely not grant immunity from regulatory and legal issues. Similarly, the touted security may not necessarily protect sensitive information in all circumstances. Both these incidences underline the inherent risks involved in the crypto arena–that even the most dedicated enthusiasts should take seriously.