FTT price dips as court restricts FTX founder Sam Bankman-Fried from contacting employees

• A New York judge has banned FTX founder Sam Bankman-Fried from contacting any former or current Alameda Research or FTX employees.
• The disgraced CEO of FTX has also been barred from using the encrypted messaging tool, Signal.
• FTT price noted an almost 4% decline on Wednesday after invalidating almost a quarter of January’s 185% rise.

FTX saga has been difficult for many people who were impacted by the collapse of the cryptocurrency exchange. But the one individual for whom the situation has been worsening by the day is the former Chief Executive Officer of the company, Sam Bankman-Fried.

Sam Bankman-Fried, out of reach

FTX founder Sam Bankman-Fried received a rather interesting ruling. The ex-CEO of the bankrupt exchange was barred from contacting any former or present employees of the cryptocurrency exchange or Alameda Research hedge fund. 

Presiding over the criminal case against Bankman-Fried, Judge Lewis Kaplan ruled that only in the presence of a counsel will Bankman-Fried be allowed to speak to Alameda and FTX employees.

He added that Sam Bankman-Fried was potentially dangerous for these employees. As per the judge, the former executive posed the threat of inappropriate contact with prospective witnesses. He stated,

“The undisputed information available to the Court regarding the ‘nature and seriousness of the danger posed by release’ on the existing conditions has changed substantially since he was released, and there appears to be a material threat of inappropriate contact with prospective witnesses. That risk, the Court finds, is clearly and convincingly sufficient to warrant the imposition of additional conditions pending the full argument of the cross-applications.”

In addition, Sam Bankman-Fried has also been directed to stop using the encryption messaging tool Signal as well as the communication platform Slack. Deliberations surrounding banning the FTX founder from accessing FTX funds are also underway, with more to be discussed over the next week.

FTT price slips again

FTT price posted another red candle on Wednesday after falling below the $2 mark earlier last week. The broader market bearishness is reaching the bankrupt exchange’s token as well, invalidating its 197% rally from the last month.

FTT/USD 1-day chart

The Parabolic Stop and Reserve (SAR) indicator is highlighting an active downtrend, which might be the effect of the rest of the market slowing down. However, extended periods of such a trend could end up proving harmful to the asset.

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