Sam Bankman-Fried, founder of FTX, has been released on $250 million bond while awaiting trial on fraud and other charges.
At 2:19 local time, Bankman-Fried stepped out of U.S. District Court in Manhattan with his parents, his legal team, and court security.
Bankman-Fried’s lawyers and prosecutors agreed to the terms of his personal recognizance bond. He will appear before Judge Ronnie Abrams in New York City on Jan. 3., where he will plead and be arraigned.
As a result of the recognizance bond, Bankman-Fried’s camp would not have to meet the full collateral requirements of the bail.
In addition to equity in his family home, his parents and two other individuals with “considerable” assets signed the bond.
On December 21, 2022, in Nassau, Bahamas, FTX co-founder Sam Bankman-Fried is escorted out of the Magistrate’s Court. A former crypto billionaire is preparing to be extradited to the US for charges related to FTX’s multibillion-dollar collapse.
In Nassau, Bahamas, FTX co-founder Sam Bankman-Fried is escorted out of the Magistrate’s Court on December 21, 2022.
In addition to the $250 million package, which prosecutors called “the largest-ever pretrial bond,” the former crypto billionaire would also have to wear an electronic monitoring bracelet, submit to mental health counseling, and refrain from traveling between the Southern and Eastern Districts of New York and the Northern Districts of California.
Bankman-Fried will be under “strict” supervision once he returns to his parents’ home in California, according to Judge Gabriel Gorenstein.
Two U.S. marshals flanked Bankman-Fried, dressed in blue suits and brown shoes. He entered the courtroom in ankle shackles, but traded them for his ankle monitor while there.
When the judge asked him if Bankman-Fried understood the consequences of breaking his bail agreement, he only spoke.
“Yes, I do,” he replied.
Additionally, the former FTX CEO will be prohibited from opening any new lines of credit over $1,000 while awaiting trial for what federal regulators have called a “brazen” fraud.
He returned to the United States voluntarily, has no history of flight, and has significantly reduced his financial assets, Assistant U.S. Attorney Nicolas Roos told the court.
The man once at the head of a $32 billion crypto empire was down to a mere $100,000, a steep fall from grace.
The collapse of FTX is shaking crypto to its core.
Alameda Research hedge fund manager Bankman-Fried is accused of committing a multibillion-dollar fraud, using investor funds to buy properties, make political donations, and backstop trades.
FTX filed for bankruptcy in Delaware on Nov. 11. Bankman-Fried’s successor, John Ray, said he’d never witnessed such a “complete failure of corporate control.”
Caroline Ellison and Gary Wang, two of his top lieutenants, pleaded guilty to fraud charges and are cooperating with law enforcement.
U.S. Attorney for the Southern District of New York charged Bankman-Fried with eight counts, including securities fraud and money laundering.
In comparison to other federal white-collar bonds, Bankman-Fried’s bond is enormous. When Bernie Madoff was awaiting trial for his multibillion-dollar Ponzi scheme, he posted a bond of $10 million. Former Enron CEO Jeff Skilling posted $5 million bond, while Elizabeth Holmes, founder of Theranos, posted $500,000. In New York, a federal judge ruled Thursday that FTX founder Sam Bankman-Fried could be released on $250 million bond while awaiting trial for fraud and other criminal charges.
At 2:19 local time, Bankman-Fried left U.S. District Court in Manhattan with his parents, his legal team, and court security.
Prosecutors and Bankman-Fried’s lawyers agreed to the terms of his personal recognizance bond. He will be arraigned in New York City on Jan. 3, where he will enter his plea.
Bankman-Fried’s camp would not have to meet the full collateral requirements for bail if he executed a recognizance bond.
He secured the bond with equity in his family home and by the signatures of his parents and two others with “considerable” assets.
Bankman-Fried is escorted out of the Magistrate’s Court on December 21, 2022 in Nassau, Bahamas. He will be extradited to the US to face charges over FTX’s multibillion-dollar collapse.
In Nassau, Bahamas, FTX co-founder Sam Bankman-Fried is escorted out of the Magistrate’s Court on December 21, 2022.
The former crypto billionaire would also be required to wear an electronic monitoring bracelet, undergo mental health counseling, and restrict travel within and between the Northern District of California and the Southern and Eastern Districts of New York in addition to the $250 million package, which prosecutors called “the largest pretrial bond ever.”
After Bankman-Fried was released to his parents’ home in California, Judge Gabriel Gorenstein said he would require “strict” supervision.
Two U.S. marshals, dressed in a blue suit and brown shoes, flanked Bankman-Fried. Bankman-Fried entered the courtroom in ankle shackles, but traded them for his ankle monitor.
In response to the judge’s question, Bankman-Fried only spoke when he was asked if he understood the consequences of breaking his bail agreement.
The judge replied, “Yes, I do.”.
As he awaits trial for what federal regulators have referred to as a “brazen” fraud at FTX, the former CEO will also be barred from opening any new lines of credit over $1,000.
Despite being at the center of a huge fraud, Bankman-Fried has returned to the United States, has no history of flight, and has significantly reduced his financial assets, Assistant U.S. Attorney Nicolas Roos told the court.
A man who once led a $32 billion crypto empire, Bankman-Fried had previously claimed he was down to $100,000.
FTX’s collapse has shaken crypto to its core.
Using customer funds to purchase properties, fund political donations, and backstop trades at his hedge fund Alameda Research, Bankman-Fried allegedly committed a multibillion-dollar fraud on investors.
On Nov. 11, FTX filed for bankruptcy protection in Delaware. Bankman-Fried’s successor, CEO John Ray, said he’d never seen such a complete failure of corporate controls.
Earlier this week, he announced that two of his top lieutenants, Caroline Ellison and Gary Wang, had pleaded guilty to fraud charges and are cooperating with law enforcement.
The U.S. Attorney for the Southern District of New York charged Bankman-Fried on Wednesday evening with eight counts including securities fraud and money laundering.
While awaiting trial on his multibillion-dollar Ponzi scheme, Bankman-Fried posted a $10 million bond. Jeff Skilling, former Enron CEO, posted a $5 million bond. Elizabeth Holmes, founder of Theranos, posted a scant $500,000.
