- SBF was granted bail in New York City on Thursday a day after being extradited
- His parents and two other people will fulfill the bail
- The 30-year-old is charged with eight counts of fraud and money laundering
- Prosecutors say he used his platform FTX as a ‘personal piggy bank’
- SBF filed for bankruptcy before his arrest; he claims he has $100k to his name
Fallen FTX founder Sam Bankman-Fried will be released on a $250million bond, according to a deal struck today in a New York City courtroom.
The disgraced financier had recently claimed to have just $100,000 to his name.
He was arrested in the Bahamas last week on a range of fraud and money laundering charges for what prosecutors described as one of the biggest financial crimes in American history.
They allege that he used his crypto-trading platform as a ‘personal piggy bank’, convincing investors to mark their billions with him only to funnel their assets into his own company. His alleged scheme was revealed when FTX filed for bankruptcy in November.
Today, a judge agreed to grant him bail – the ‘largest pre-trial amount in US history’ and 25 times the $10million posted by Bernie Madoff.
Four people including his parents and one other relative vouched for him.
Sam Bankman-Fried is shown leaving court on Thursday after being granted $250million bond – the largest pre-trial amount in history
The agreement is a recognizance bond signed by Bankman-Fried’s parents and two other individuals with ‘considerable’ assets.
His parents guaranteed it using the equity of their home, but neither they nor the other parties are required to put up the full cash amount to secure his freedom. Instead, they will be held liable if he fails to show up to court. SBF appeared in court shackled, wearing a dark suit and tie.
He spoke only to confirm that he understood the charges and the bail agreement.
His parents, Stanford Law professors Barbara and Allan Bankman-Fried, have agreed to put up the equity they own in their $4million California home, where he will live during his house arrest, as part of the bail requirement.
Bankman-Fried, 30, has been charged with a range of fraud and money laundering charges after allegedly stealing $1.8billion from his crypto-trading platform, FTX, to fund his own life.
Federal prosecutors and investigators from the SEC say he used the platform like a ‘personal piggy bank’ to fund his own lifestyle.
Bankman-Fried was arrested in the Bahamas last week and was extradited to New York where he appeared before a judge today.
Prosecutors told the court that SBF committed fraud of ‘epic proportions’. The judge agreed with the prosecution that the ‘weight of the evidence was strong’.
One of the reasons he was confident in granting bond was SBF’s newfound fame – he has ‘achieved sufficient notoriety that it would be impossible’ for him to hide, he said.
Another term of his bail agreement is wearing an electronic ankle monitor. He is banned from opening any new lines of credit, he must remain within the Northern District of California and must undergo mental health counseling after complaining of depression in previous proceedings.
He will return to court on January 3rd.
Daily Mail (UK)