A billionaire is under house arrest: American authorities accuse Sam Bankman-Fried, founder of the cryptocurrency exchange FTX, of systematic fraud and money laundering. He is currently awaiting his trial. However, because he does not follow the rules, the court now threatens to revoke some of his privileges: They might even take away his beloved League of Legends (LoL).
Who is Sam Bankman-Fried? SBF was once considered a star of the crypto scene. In 2019, he founded the cryptocurrency exchange FTX together with a college friend. The company quickly became a huge success. Within a few years, FTX secured billions in investments and SBF made a fortune. Over the past few years, the company grew to become one of the largest trading and investment platforms in the cryptocurrency sector.
Through sponsorships, SBF made his company known to a wide audience:
- For example, the company secured naming rights to an NBA basketball stadium in Miami.
- They also appeared as a sponsor for Mercedes in Formula 1.
- Furthermore, FTX was active in the esports sector. In June 2021, they signed a sponsorship deal with TSM (Team SoloMid), a renowned US team in League of Legends.
SBF is a big gaming fan himself. During a video conference with a major investor, Sam Bankman-Fried allegedly played League of Legends secretly instead of focusing on the meeting.
In November 2022, the company ran into liquidity issues. FTX filed for bankruptcy after a takeover offer from another cryptocurrency exchange was withdrawn. Many private investors lost their money, and SBF is accused of defrauding his customers and investors.
If Sam Bankman-Fried is caught watching this trailer, he could face a lot of trouble. But don’t worry, because you have nothing to fear!
The court threatens to limit internet access because he does not follow the rules
What crimes is he accused of? American authorities have charged Bankman-Fried with 8 serious offenses. The indictment mentions “wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy, and money laundering.”
In our legal system, these accusations roughly correspond to telecommunications fraud, conspiracy to commit telecommunications fraud, and securities fraud, as well as conspiracy to commit securities fraud and money laundering.
Sam Bankman-Fried faces up to 115 years in prison if the court convicts him on all counts. However, SBF pleaded “not guilty” at a preliminary hearing, so a major trial will soon take place.
What has the court ordered? Until the trial begins, he is free on bail and under house arrest. He is currently serving this house arrest at his parents’ home.
However, he does not live in poor conditions at home. His parents, Joseph Bankman and Barbara Fried, live in a multimillion-dollar estate in Palo Alto, California (via Insider). He has to wear an ankle monitor, and his communication options are restricted.
Sam Bankman-Fried is only allowed to use his phone and computer to communicate with his lawyers.
After Bankman-Fried was caught using a VPN client to secretly watch the Superbowl, authorities are now threatening to further limit his access to electronic devices.
To verify whether he follows the judge’s orders, authorities are demanding to electronically monitor his devices. Sam Bankman-Fried would then only be allowed to access his Gmail account, Zoom, and SMS. He may use these means to communicate with his lawyers.
Authorities want to prevent SBF from contacting witnesses at all costs. Therefore, he is also not allowed to play LoL anymore, as the chat in the MOBA could theoretically be used to influence witnesses and compromise the trial.
These restrictions are likely to be unwelcome for SBF. The “League of Legends” enthusiast will have to forgo his favorite game in the future. The capitalism-critical US site Kotaku already quips: SBF needs to find another way to relax. Maybe his parents could buy him a Nintendo Switch. It runs online so poorly that the court might turn a blind eye.
To avoid further trouble with the courts, SBF should rather play single-player games in the future. If he is convicted, he will have to find a new hobby in prison anyway.
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