Co-founder of FTX Sam Bankman was released on $250 million bail according to multiple reports. This is supposedly the biggest bond in the history of federal pretrial.
Co-Founder of FTX Sam Bankman Released On $250 Million Bail
The co-founder and former CEO of collapsed crypto exchange Sam Bankman-Fried on Thursday walked out of a Manhattan courthouse after he was released on a $250 million bond as per reports from the Associated Press.
Assistant U.S. Attorney Nicolas Roos revealed that this is believed to be the most prominent federal pretrial bond ever in its history. The former CEO will be placed under house arrest at his parents’ home in Palo Alto, California until his next hearing which is stipulated to occur in New York City on January 3.
Magistrate Judge Gabriel W. Gorenstein reportedly agreed to the bond, approved the house arrest, and was also required that an ankle monitor be attached to Bankman-Fried just before he left the courthouse. And according to the AP, the bond was secured by the equity in the house of Bankman-Fried’s parents as well as the signature of them and two other people with considerable assets.
Bankman-Fried Faces Up To Eight Counts of Conspiracy and Criminal Activity
Bankman-Fried faces up to eight counts of conspiracy and criminal activity related to wire fraud, commodities fraud, securities fraud, money laundering as well as violation of campaign finance laws. The former CEO was extradited to the US after he was arrested in the Bahamas.
Bankman-Fried Resigned As the CEO of FTX after the Company Filed For Bankruptcy
Bankman-Fried resigned as the CEO of FTX back in November after the cryptocurrency platform filed for Chapter 11 bankruptcy.
“I was the CEO of FTX. That means I was responsible,” Bankman-Fried stated during a live interview at The New York Times’ Dealbook Summit on November 30, but he has also denied criminal wrongdoing and intent.
The new CEO of FTX, John Ray called the FTX collapse “plain, old embezzlement,” in the early parts of December.
Two Former Associates of Bankman-Fried’s Have Pleaded Guilty To Federal Criminal Fraud Charges
U.S. Attorney Damian Williams on Wednesday announced that two former associates of Bankman-Fried’s have pleaded guilty to federal criminal fraud charges. Carolyn Ellison, the former CEO of Alameda Research which is a trading firm started by Bankman-Fried, and FTX co-founder Gary Wang, pleaded guilty to charges also including wire fraud, securities fraud, and commodities fraud. Both Ellison and Wang are at the moment cooperating with the authorities.