FTX founder Sam Bankman-Fried to be released on $250 million bail, will live with his parents

FTX co-founder Sam Bankman-Fried is escorted out of the Magistrate’s Court on December 21, 2022 in Nassau, Bahamas. Joe Raedle | Getty ImagesFTX founder Sam Bankman-Fried will be released on $250 million bail bond while awaiting trial for fraud and other criminal charges, a New York federal ruled on Thursday.The bail terms were agreed to by prosecutors and Bankman-Fried’s lawyers.In addition to the $250 million package, which prosecutors called “the largest-ever pretrial bond,” the former crypto billionaire would also be required to wear an electronic monitoring bracelet, submit to mental health counseling, and restrict himself to the Northern District of California. The 30-year-old will face his next hearing in New York City on Jan. 3.Judge Gabriel Gorenstein said that Bankman-Fried would require “strict” supervision following his release to his parents’ home in California.His parents, both Stanford Law professors, were present in the courtroom. Bankman-Fried was flanked by two US Marshals, dressed in a suit and tie.Bankman-Fried’s parents would be to put up the required equity in their home to partially satisfy bail conditions.The former FTX CEO would also be barred from opening any new lines of credit while awaiting trial over what federal regulators have called a “brazen” fraud at his bankrupt crypto empire. Bankman-Fried was the heart of “a fraud of epic proportions,” assistant US attorney Nicolas Roos told the court. But the former billionaire voluntarily returned to the United States, has no history of flight, and has significantly reduced financial assets. Bankman-Fried had previously claimed that he was down to a mere $100,000, a steep fall from grace for a man who was once at the head of a $32 billion crypto empire. Bankman-Fried stands accused of perpetrating a multibillion-dollar fraud on his investors, using customer funds to purchase properties, fund political donations, and backstop trades at his hedge fund Alameda Research. Federal regulators allege Over $8 billion in customer funds is missing. FTX filed for bankruptcy protection in Delaware on Nov. 11. Bankman-Fried’s replacement, CEO John Ray, said he’d never seen such a “complete failure of corporate control.” Two of his top lieutenants, Caroline Ellison and Gary Wang, pleaded guilty to related fraud charges and are cooperating with law enforcement. Wang and Ellison’s plea deals were revealed on Wednesday. Bankman-Fried was indicted in the Southern District of New York on eight counts including securities fraud and money laundering, and was rendered from the Bahamas to New York Wednesday evening.

Leave a Comment

Your email address will not be published. Required fields are marked *