In a letter filed in Manhattan federal court, SBF’s lawyer Christian Everdell said both sides believed they were “close to a resolution”

Lawyers for Sam Bankman-Fried (SBF) are closing in on an agreement with U.S. prosecutors on amended bail conditions for the indicted FTX crypto currency exchange founder, who is attempting to assure a sceptical judge he should remain free.

In a letter filed on Friday night in Manhattan federal court, SBF’s lawyer Christian Everdell said both sides believed they were “close to a resolution”, and expect to formally put forward new limitations by next week.

SBF faces a trial set for October 2 on charges of stealing billions of dollars in FTX customer funds to plug losses at his Alameda Research hedge fund, and making big illegal political donations to buy influence in Washington, D.C.

Bail talks took place this week after U.S. District Judge Lewis Kaplan at a March 10 hearing renewed his concerns that SBF’s electronic communications with others might surpass the bounds of his $250 million bail package.

Kaplan’s consent is required to amend SBF’s bail.

The former billionaire has pleaded not guilty to eight counts, and not yet been indicted on four. He is living under house arrest with his parents in Palo Alto, California.

Prosecutors raised the spectre of witness tampering in January after SBF attempted to contact John Ray, who became FTX’s chief executive when the firm filed for bankruptcy in November, and an in-house lawyer.

SBF’s lawyers have said their client was trying to help, not interfere.

At the March 10 hearing, prosecutors and defence lawyers suggested giving SBF a flip phone with no internet capability and a basic laptop with restricted functions.

That was too generous for Kaplan, who said SBF was “inventive” and could possibly “find a way around” the restrictions without being caught.

In Friday’s letter, Everdell also sought the judge’s authorisation to let SBF in the meantime use a laptop to access some FTX materials.

Though the laptop would lack monitoring software or limit SBF’s internet access, a lawyer or paralegal would supervise his use and take the laptop away when SBF finished with it, Everdell said.