Sam Bankman-Fried Will Be Released To His Parents On $250 Million Bond
FTX founder and former CEO Sam Bankman-Fried arrived in the United States late Wednesday night and, as sources had claimed, he made an appearance in court only hours later. The disgraced crypto billionaire — who has since seen his fortunes largely vanish — faces several charges related to FTX and Alameda Research, including allegations of wire fraud and money laundering. He was the first to be charged in the FTX debacle, but investigators say they are moving quickly. U.S. Attorney for the Southern District of New York Damian Williams has advised others who participated in the company's shenanigans to "get ahead of it" by working with officials (via Twitter).
On Wednesday, December 21, two former FTX executives and friends of Bankman-Fried were charged for their roles at the company, and officials revealed that the two are cooperating with the federal investigation as witnesses. Both Caroline Ellison, who served as Alameda Research's co-CEO, and Gary Wang, a co-founder of FTX, were charged with wire fraud, among other things, and both face civil complaints from the SEC. As for Bankman-Fried, CNBC reports he's going to be released on a recognizance bond.
Bankman-Fried will live with parents under strict rules
The New York court hit Bankman-Fried with a $250 million recognizance bond, a record-setting figure that eclipses the $10 million bond that had been posted by Bernie Madoff, according to CNBC. Once released, Bankman-Fried will move in with his parents, where he'll wear an ankle bracelet to monitor his location and ensure he remains under house arrest. Assuming he shows up for court appointments as scheduled, his parents and two other unspecified individuals won't have to shell out the assets put on the line for his bond.
In addition to living with his parents and wearing the ankle bracelet, the court has also said that Bankman-Fried must undergo mental health counseling. The reasons for offering Bankman-Fried a bond at all were due in part to the dwindling funds he has available to him at this point in time, as well as a lack of evidence that he's a flight risk. As far as his financial situation is concerned, the court has mandated that Bankman-Fried cannot open a line of credit that exceeds $1,000. According to The Associated Press, Bankman-Fried left court with his parents on Thursday.