FTX’s Bankman-Fried released on record $250 million bond for ‘epic’ fraud
U.S. prosecutor dubbed the collapse of the FTX crypto exchange a “fraud of epic proportions,” but on Thursday, Sam Bankman-Fried was released on a $250 million bond package as he awaits trial.
In an effort to cover up losses at his hedge fund, Alameda Research, the founder of FTX is being charged by federal prosecutors in Manhattan of stealing billions of dollars from his clients.
On Thursday, Bankman-Fried was not given an opportunity to enter a plea. He has admitted that there were problems with FTX’s risk management in the past, but maintains that he is not criminally liable. After the hearing in Manhattan federal court, Mark Cohen, his defence attorney, declined to comment.
The next court date for Bankman-Fried, assigned to U.S. District Judge Ronny Abrams by US Magistrate Judge Gabriel Gorenstein, is January 3, 2023.
When 2019 rolled around, Bankman-Fried established FTX. Because of the recent surge in the value of bitcoin and other digital assets, the exchange was recently valued at around $32 billion, making the MIT alumnus a multibillionaire and a powerful political donor in the United States.
Gorenstein stated that Bankman-Fried had “achieved sufficient notoriety that it would be impossible” for him to participate in other financial scams or to hide without being identified in giving him pretrial release.
Photographers waited for the former billionaire outside the courthouse in lower Manhattan on Thursday as he got into a black SUV following his court appearance. To the contrary of the shorts and T-shirt he had become known for wearing while leading FTX, he now had facial beard and a grey suit.
Prosecutor Nicolas Roos informed Gorenstein that Bankman-Fried would have to give up his passport and be under house arrest with his parents in Palo Alto, California as part of the bail conditions. In addition, he would have to get frequent therapy and assessments for his mental health.