- After a federal judge deemed FTX founder Sam Bankman-Fried fit to be released, the court granted him $250 million bail while he faces trial for eight criminal charges connected with fraudulent activity at his collapsed crypto venture.
On Thursday, a federal judge in New York granted FTX founder Sam Bankman-Fried’s release on an astonishing $250 million bond while he awaits trial for various fraud and criminal charges.
After officially facing his charges in the U.S. District Court of Manhattan, Bankman-Fried exited with a procession of family members, lawyers, and court security at 2:19 pm local time.
After much deliberation, the prosecutors and Bankman-Fried’s legal team reached a consensus on his personal recognizance bond terms. The 30-year-old will appear in court before Judge Ronnie Abrams for his next hearing located in New York City on January 3rd to enter his plea and stand for arraignment.
Bankman-Fried’s camp can avoid the full collateral requirement of bail if they agree to a recognizance bond, which is an agreement in writing from the accused promising to appear before the court when ordered.
The bond was solidly backed by his family home’s equity, as well as the signatures of his parents and two other individuals who had considerable resources.
Beyond the staggering $250 million package, dubbed by prosecutors as “the largest-ever pretrial bond”, the ex-crypto mogul would need to wear an electronic tracking device, attend mental health therapy sessions, and limit his travels within Northern California and between Southern & Eastern New York.
Judge Gabriel Gorenstein declared that Bankman-Fried shall need to be closely monitored upon his release back to his parent’s residence in California.
Bankman-Fried was accompanied by two U.S. marshals and his Stanford Law professor parents as he entered the courtroom in shackles but exchanged them for an ankle monitor while inside.
He remained silent until the judge posed a query to him on whether Bankman-Fried comprehended the ramifications of violating his bail agreement. Bankman-Fried told the judge, “Yes, I do.”
The ex-CEO of FTX is prohibited from opening any credit lines worth more than $1,000 while he awaits trial for the “brazen” fraud that’s been alleged by federal regulators at his now-defunct crypto venture.