A few weeks ago, infamous FTX founder Samuel Bankman-Fried lost his bail package and was at risk of jail time until October. Courts are tired of trying to monitor Bankman-Fried’s online activities, and U.S. District Court Judge Louis Kaplan said the courts had appropriate bail conditions to limit Bankman-Fried’s suspicion. We have determined that the only option is to recommend an independent expert who can help set up the online activity.
Bloomberg reports that Kaplan will give Bankman-Fried until this Friday to tell the court which technical privileges need to be revoked to prevent Bankman-Fried from obstructing a court investigation into a criminal fraud case. Yesterday, Bankman-Fried formally submitted a letter of recommendation to two technical consultants, who he believed would be qualified to advise on the terms of his bail. Nominated Edward Stroz and Michael McGowan.
Bankman-Fried provided resumes to both candidates. Stroz served as an FBI agent in his 1980s and his 1990s, specializing in major international financial crimes. During that time, he formed the New York City Computer Crime Unit and investigated hundreds of cases alleging bank fraud. Since then, he has managed his Aon, an international consulting firm, for the last 20 years. His responsibilities include overseeing digital forensic investigations of corporate clients, barristers, and civil litigation.
McGowan has a similar background, with 19 years of experience as a digital forensics consultant, including 15 years at Aon. In 2019, he founded his own consulting firm Metafor. His résumé includes texts from Major League Baseball player Alex Rodriguez, analyzing his messages, discovering a forged contract with Mark Zuckerberg, and discovering deleted documents that led to hundreds of millions of dollars in damages. His history of analyzing technology-related questions in the cases he collects is highlighted. – Dollar payment in Zoom case.
Stroz told Ars he has no comment at this time. Ars was unable to reach McGowan for comment. A spokeswoman for Bankman-Fried attorney Mark S. Cohen also declined to comment.
It will be up to Kaplan to decide whether these experts are eligible to help the court set new bail conditions. After learning Bankman-Fried was using his VPN, Kaplan decided he needed technical consulting.
Bankman-Fried used the VPN service “just to watch the Super Bowl,” Bloomberg reported, but the judge knew he accessed the VPN at least once. The online activity occurred after Bankman-Fried was banned from using encrypted messaging and calling applications, specifically Slack and Signal. At the time, Kaplan wrote that his biggest concern with messaging and calling apps was Bankman-Fried’s potential contact with witnesses.
Bloomberg says Bankman-Fried can’t easily hide his tracks using a VPN when logging into cryptocurrency exchanges, transferring data or accessing the dark web. It is reported that it is likely that the court was concerned. In Bankman-Fried’s order banning his VPN use, Kaplan wrote:
If Kaplan accepts either or both of Bankman-Fried’s independent expert recommendations, Stroz and McGowan argue that the use of any other technology, beyond encrypted messages and VPN services, poses the same risks. It should help courts determine if it is likely relevant and should be barred until litigation is decided. .
