All of this comes as Sam Bankman-Fried's internet use lands him in hot water, with prosecutors demanding further bail conditions.
Today's headlines
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SBF's bond co-signers revealed… 😱
For some time now, the identities of two people willing to put up hundreds of thousands of dollars to back Sam Bankman-Fried's bond have been kept secret. But now, thanks to a judge, they have been unmasked. They're Larry Kramer and Andreas Paepcke — Stanford University staff who are close friends of SBF's parents. Collectively, they have pledged $700,000. In a statement, Kramer said: "During the past two years, while my family faced a harrowing battle with cancer, they have been the truest of friends — bringing food, providing moral support, and frequently stepping in at a moment's notice to help. In turn, we have sought to support them as they face their own crisis." Several media outlets had been demanding for this information to be released.
…amid calls for even tighter bail 🚨
Federal prosecutors are seeking to substantially toughen the terms of Sam Bankman-Fried's bail agreement, virtually banning him from using the internet. The fallen entrepreneur has used two methods of encryption in the past month. As well as messaging a former colleague and potential witness on Signal, he also used a VPN — claiming that he was trying to watch the Super Bowl. Judge Lewis Kaplan has been asked to drastically limit his use of cellphones, tablets, computers and the internet. In court filings, the prosecution warned "the existing conditions leave too much room for circumvention of restrictions aimed at preventing inappropriate conduct, including contacting witnesses and accessing cryptocurrency assets."
Bankrupt Celsius seeks sale 💸
Bankrupt cryptocurrency lender Celsius has found a buyer that hopes to resurrect the company. If all goes smoothly, smaller Celsius investors with less than $5,000 frozen on the site could see up to 70% of their funds back. Its Earn platform and crypto mining division would be passed over to NovaWulf Digital Management, which says it's prepared to inject $55 million in cash and rebuild operations as a public company. This would involve oversight from the Securities and Exchange Commission. And the company — currently referred to as "NewCo" — would be 100% owned by former Celsius Earn creditors, with no involvement of Celsius founders. The plan is subject to approval from a bankruptcy judge in New York.
Republican calls for 401(k) shake-up 💰
A Republican senator is reviving a bill designed to legalize the purchase of crypto with 401(k) retirement account funds. Tommy Tuberville says he wants to "keep the government out of Americans' investment decisions." All this comes after Fidelity faced a backlash for allowing employers to offer BTC as an option to their workforce, with a chance to allocate up to 20% of their portfolio to this digital asset. Sen. Tuberville said: "Meddling in 401(k) investments through overregulation restrains financial growth and restricts personal liberty. The federal government shouldn't choose winners and losers in the investment game. Bureaucrats have no business telling hard working Americans how to manage their savings accounts."
