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

Co-founder of FTX Sam Bankman Friedwho is accused of embezzling billions of dollars deposited in the cryptocurrency exchange, walked out of New York federal courthouse on Thursday after posting $250 million in personal bond.

Bankman-Fried got into a black SUV and was chased away at the start of a cross-country trip that will eventually end at his parents’ home in Palo Alto, Calif., where he will be under house arrest, under terms set. . by a federal judge.

The 30-year-old appeared in court a day after his Bahamian extraditionwhere he was arrested on December 12 following his indictment on a series of charges related to the collapse of FTX.

Bankman-Fried, wearing a dark blue suit and tan shoes, entered court with leg irons. He did not speak until the end of the hearing.

A bond is a written undertaking by the accused to appear in court on an order. In return, the Bankman-Fried camp will not be required to meet any security requirements on the bond.

The terms of the package, described by U.S. attorney Nicolas Roos as “very restrictive” and the largest bail he could remember, were agreed to by federal prosecutors and Bankman-Fried attorneys, CNBC reported.

The “$250 million personal bond signed by Mr. Bankman-Fried and co-signed by his parents … will be secured by parental involvement in their home” in Palo Alto, Calif., the attorney’s office spokesman said. American, Nicholas Biase. 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 for a hearing in Nassau, Bahamas, December 21, 2022.Rebecca Blackwell/AP

Judge Gabriel Gorenstein said Bankman-Fried will demand “strict” supervision after his release to his parents’ California home.

He must wear an electronic monitoring bracelet, submit to mental health counseling and will be restricted to the Northern District of California, subject to bail conditions.

Bankman-Fried will also be barred from opening new lines of credit pending trial.

He was charged in the Southern District of New York on eight counts, including defraud FTX lenders and customers, money laundering and campaign finance. He was also charged last week by the United States Securities and Exchange Commission with defrauding investors and enriching his private crypto hedge fund Alameda Research.

The alleged fraud against customers began in 2019, the Justice Department said. Gretchen Lowe, acting director of the enforcement division of the Commodity Futures Trading Commission, estimated customer losses at more than $8 billion.

U.S. attorney Damian Williams called Bankman-Fried’s actions with FTX “one of the greatest financial frauds in American history.”

Bankman-Fried hailed as a crypto genius with FTX once reportedly valued at a whopping $32 billionuntil the the exchange collapsed in November.

He said Axios at the end of November, he had $100,000 left in his bank account the last time he checked.

Thursday’s development came a day after a federal prosecutor in New York announced two of the Bankman-Fried’s main business partners — a co-founder of FTX and former CEO of hedge fund Alameda Research — pleaded guilty to fraud.

Former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang are cooperating with prosecutors, the New York South U.S. Attorney said in a video statement.

Bankman-Fried’s next hearing is set for January 3. He will likely appear remotely from his parents’ home.

Gorenstein told him that if he did not show up or if he jumped bail, a warrant would be issued for his arrest. The judge asked Bankman-Fried if he understood.

“Yes, I know that,” he said.

Emilie Berk and David K. Li contributed.

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