February 6, 2023

FTX co-founder Sam Bankman-Fried was released on $250 million bond

Co-founder of FTX Sam Bankman-RoastA man accused of misappropriating billions of dollars deposited into a cryptocurrency exchange walked free from federal court in New York on Thursday after posting a $250 million personal recognizance bond.

Bankman-Fried got into a black SUV and was driven away at the start of a cross-country journey that would eventually end at her parents’ home in Palo Alto, California, where she would be placed under house arrest. By a federal judge.

A day later, the 30-year-old appeared in court Deportation from the BahamasHe was arrested on December 12 following his indictment on charges related to the collapse of FTX.

Banker-Fried entered the court wearing a dark blue suit and brown shoes, with shackles around his ankles. He did not speak until the trial was over.

A recognizance bond is a written commitment by the accused to appear in court when ordered. In return, the Bankman-Fried camp does not require a bond to meet the full bond requirements.

The terms of the package, which U.S. Attorney Nicholas Rouse described as “very restrictive” and the largest pretrial bond he can recall, were agreed upon by federal prosecutors and Bankman-Fried’s attorneys. CNBC reported.

“The $250 million personal promissory note signed by Mr. Bankman-Fried and co-signed by his parents … will be secured by the parent’s equity interest,” said Nicholas Bias, a spokesman for the U.S. attorney’s office in Palo Alto, California. In a statement after the court appearance.

Bankman-Fried’s parents, both Stanford law professors, were in the courtroom.

Sam Bankman-Fried, center, arrives at the Magistrate’s Court Building in Nassau, Bahamas on December 21, 2022.Rebecca Blackwell / AB

Judge Gabriel Korenstein said Bankman-Fried will require “strict” supervision following her release to her parents’ California home.

He must wear an electronic monitoring bracelet, submit to psychiatric counseling and be confined to the Northern District of California, according to bail terms.

Banker-Fried will also be barred from opening new lines of credit while awaiting trial.

He was indicted in the Southern District of New York on eight counts, including Deceiving FTX Lenders and Customers, money laundering and campaign finance crimes. He was indicted by the U.S. Securities and Exchange Commission last week for defrauding investors and enriching his privately held crypto hedge fund Alameda Research.

The alleged fraud against customers began in 2019, the Justice Department said. Gretchen Lowe, executive director of the Commodity Futures Trading Commission’s Division of Enforcement, predicted more than $8 billion in losses for clients.

U.S. Attorney Damian Williams called Bankman-Fried’s dealings with FTX “one of the largest financial frauds in American history.”

Bankman-Fried was once hailed as a crypto genius with FTX. $32 billionUntil then The exchange collapsed in November.

He said Axios He had $100,000 in his bank account when he last checked in late November.

Thursday’s development came a day after a federal prosecutor in New York announced two Bankman-Fried’s Best Business Partners – an FTX co-founder and former CEO of hedge fund Alameda Research – He pleaded guilty to fraud.

Former Alameda CEO Carolyn Ellison and FTX co-founder Gary Wang are cooperating with prosecutors, the U.S. attorney for Southern New York said in a video statement.

Bankman-Fried’s next hearing is set for Jan. 3. He may appear far away from his parents’ house.

Korenstein told him that if he failed to appear or jumped bail, a warrant would be issued for his arrest. The judge asked Bankman-Fried if she understood.

“Yes, I do,” he said.

Emily Berg And David K. Li Contributed.