Disgraced FTX founder Sam Bankman-Fried is still expected back in court later this week after a federal judge on Tuesday denied his request to cancel a hearing on modifying his bail conditions.
Bankman-Fried's attorneys sent a letter Monday informing U.S. District Judge Lewis A. Kaplan that the defense had reached an agreement with prosecutors that would loosen new restrictions on the former FTX CEO's communication with others through messaging apps while he awaits trial, and asked that a hearing set for Thursday be scrapped.
Kaplan shut down the motion and said oral arguments will move forward as planned.
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Last week, Kaplan issued a ruling prohibiting Bankman-Fried from using encrypted or ephemeral call or messaging apps, including Signal, after prosecutors expressed concern that Bankman-Fried might try to influence witnesses using such apps as he awaits trial on several charges linked to the collapse of his cryptocurrency exchange.
The judge also prohibited Bankman-Fried from contacting staff at the Alameda Research hedge fund he founded, unless attorneys are present.
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The proposed agreement between Bankman-Fried's lawyers and federal prosecutors would have eased the restrictions Kaplan imposed, allowing the former FTX CEO to "place voice calls, FaceTime calls, and Zoom audio and video calls, and use iMessage, [and] SMS text."
Bankman-Fried remains out of custody on a $250 million bond at his parents' home in Palo Alto, Calif., after pleading not guilty to all charges. His trial is set to begin in the fall.
FTX filed for bankruptcy in November.
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Thursday's hearing before the U.S. District Court in the Southern District of New York is slated to begin at 10:30 am EST.
FOX Business' Greg Norman contributed to this report.
