FTX Founder Sam Bankman-Fried Released on A $250 Million Bail Package
A day after being extradited to the United States after facing criminal charges over the collapse of crypto exchange FTX, disgraced founder Sam Bankman-Fried has been released on a $250 million bail package just on his first appearance in the U.S. court.
The bail hearing took place in Manhattan federal court on Thursday, December 22. The bail package involves a recognizance bond worth $250 million secured by his parent’s house in California. Federal prosecutor Nicholas Roos also added that this also turns out to be the largest pretrial bonds in the US history. The bail conditions for SBF require him to stay with his parents and submit for electronic monitoring.
The collapse of crypto exchange FTX has been one of the biggest falls of crypto exchanges in the history of crypto markets after the 2014 Mt.Gox incident. Speaking to U.S. Magistrate Judge Gabriel Gorenstein, federal prosecutor Roos said that the charges against SBF are serious enough to warrant him in custody, however, noted that he returned willingly from The Bahamas after his arrest and that his assets have “diminished significantly”. Roos further noted that the size of the bond will “severely restrict the defendant’s ability to move.”
The bonds presented by SBF and his lawyer, Mark Cohen, needs to be signed by his parents along with two other people with “considerable” assets. U.S. Magistrate Judge Gabriel Gorenstein also said that the risk of SBF fleeing was very less while adding that he presented no further danger to the public in terms of future financial crimes.
Gorenstein further added: “The defendant has achieved significant notoriety such that it would be impossible” for him to conduct financial transactions. “The notoriety also goes to risk of flight and it would be very difficult for the defendant to hide without the risk of being recognized.”
Following FTX’s collapse last month, SBF has appeared in several media interviews wherein he argued that the collapse of the crypto exchange was majorly due to managements missteps and wasn’t an intentional fraud.
A day before on Wednesday, Manhattan U.S. Attorney Damian Williams said that SBF’s close associates - Alameda Chief Executive Officer Caroline Ellison and former FTX Chief Technology Officer Gary Wang - have pleaded guilty to the fraud and have been cooperating with the prosecutors.
Ellison has pleaded guilty to severe charges including wire fraud and conspiracy to commit money laundering. At the same time Wang has pleaded guilty to four charges. On these counts, the two will also faces decades in prison.