Disgraced FTX CEO Sam Bankman-Fried released on $250 million bail
Set to live with his parents, the founder of FTX, the once crazy rich 30 year old Sam Bankman-Fried was arraigned in a Westchester, New York court today. Other former employees of FTX, and floating in Bankman-Fried's orbit have already pled guilty and are cooperating with federal authorities.
First reported in a news article from CNBC.
The federal judge ruled that Bankman-Fried could be freed on $250 million bail, stemming from eight counts of alleged fraud in relation to the collapse of FTX this year.
Two of Bankman-Fried's top executives have already pled guilty. Caroline Ellison and Gary Wang, on a number of criminal charges also relating to fraud at FTX.
In the ruling the federal court justice, indicated that the terms of a personal recognizance bond could be applied. These terms were agreed to by both the prosecutors and defense attorneys.
A recognizance bond is an article of commitment that Bankman-Fried will appear in court on the agreed upon date, and stand trial. With this agreement the court allows Bankman-Fried to avoid the full cost of the bond, but is required to put up a portion of the total as collateral.
To secure the bond Bankman-Fried had to provide equity in the family residence, the signatures of his parents and two unnamed individuals with "considerable" assets.
In the ruling put forth at the arraignment, Judge Gabriel Gorenstein, required that Bankman-Fried remain under "strict" supervision. This would take place after the disgraced billionaire was released to his parents home in California. He also can not leave the Northern District of California.
Prosecutors had said the this was the largest pretrial bond they had ever asked for, or gotten before. The defendant must wear an electronic bracelet to monitor his movements and participate in a battery of mental health screenings and counseling.
Of the charges prosecutors said in their presentation that the former FTX CEO was said to be at the heart of a fraud that was of epic proportions.
Assistant US Attorney Nicholas Roos told the court that Bankman-Fried participated in a brazen fraud at the fallen crypto empire. In Bankman-Fried's favor the seasoned prosecutor also said Bankman-Fried voluntarily returned to the United States, has no real assets or cash, and no history of flight from authorities.
In other reporting Bankman-Fried claimed he had only $100,000 left in this bank account. As a part of the surrender, Bankman-Fried must provide the court with all documents pertaining to his assets, including bank statements.
The back story in this fraud trail hasn't changed, prosecutors are alleging a massive fraud scheme where investors were bilked out of billions of dollars. Their money purchased properties, funded political campaigns and backstop trades at Alameda Research, Bankman-Fried's hedge fund.
Regulators for the federal government are alleging over $8 billion in customers funds are still missing. This was all revealed after FTX filed for bankruptcy protection in Delaware on November 11, 2022.
The new CEO, John Ray, is saying in statements that there was a complete failure of corporate control.
Top executives have plead guilty to fraud charges and are cooperating with the federal government and regulators. Caroline Ellison and Gary Wang, both lieutenants of Bankman-Fried, had plea deals that are now public, provided on Wednesday.
Bankman-Friend is due back in New York court on January 3.
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