Sam Bankman-Fried Gets Out on $250 Million Bail

Must read

Here’s How Riggs Digital Marketing Helps Fitness Brands Dominate

If you are in the fitness industry and you want to compete with larger, more established brands, you need to do things differently. This...

Just 18 Senate Republicans Voted To Fund The Government And Not Crash The Economy

Out of all of the Senate Republicans present for the vote, just 18 of...

Media Finally Realizes It’s Republicans Not Democrats Who Are In Disarray

Things are so bad in the Republican-led U.S. House of Representatives that CNN’s chyron read “GOP in Crisis, GOP Scrambling after Scalise...

Nvidia Stock Nearly Triples In 2023 On AI Boost — Is It A Buy?

Nvidia (NVDA), a giant in data centers and gaming, continues to sizzle. The chip giant is seen as one of the biggest winners...

Sam Bankman-Fried is being released on a huge recognizance bond following his appearance in a Manhattan Federal Court to face  fraud charges related to the collapse of FTX and Alameda Research.

The disgraced crypto king was extradited from the Bahamas to the United States late on Dec. 21. He appeared in a federal court in Manhattan Thursday, but entered no plea. His next court appearance is set for Jan. 3.

Bankman-Fried was released after his parents, both law professors at Stanford, signed a $250 million recognizance bond pledging their California home as collateral, according to multiple media reports. Two other friends with significant assets also signed, according to reports.

Such a bond doesn’t require full payment up front, but comes into play if a defendant misses a court hearing, or skips town. 

Bankman-Fried will live at his parents’ house and will be required to wear an ankle bracelet to monitor his whereabouts during the pre-trial period, which could be lengthy given the size and scope of the FTX collapse.

The FTX Case is Moving Quickly

Justice Department lawyers moved to extradite Bankman-Fried after two of his close associates pleaded guilty to multiple federal fraud charges and agreed to cooperate with prosecutors. 

Zixiao (Gary) Wang, 29, former FTX co-founder and Chief Technology Officer, and Caroline Ellison, 28, the former CEO of Alameda Research, the hedge fund founded by Bankman-Fried, pled guilty Dec. 19, according to the U.S. Attorneys Office for the Southern District of New York. 

“As I said last week, this investigation is very much ongoing,” U.S. Attorney Damian Williams said in a prerecorded message.

Prosecutors Say ‘Our Patience is Not Eternal’ 

Federal prosecutors are putting pressure on other employees of FTX and Alameda Research to turn against their former boss.

“Let me reiterate a call I made last week,” Williams said in the message. “If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it. We are moving quickly and our patience is not eternal.”

FTX’s downfall started on November 6, when Changpeng Zhao, a rival of Bankman-Fried and founder of the Binance cryptocurrency exchange, announced that his group would sell its holdings of FTT, the crypto currency issued by FTX. . The reason given by Zhao was that he had doubts about the balance sheet of Alameda.

FTT was the cryptocurrency issued by FTX.

The announcement, made on Twitter, caused a run on FTX by its customers, attempting to withdraw their funds in the form of cryptocurrencies. SBF said, on November 7, that the assets were “fine,” but it was too late.

On November 8, he announced that he had reached an agreement with Zhao to sell him his empire. But the next day, Zhao backtracked and abandoned the deal because the financial situation of FTX and Alameda was more precarious than expected.

Bankman-Fried tried to find another savior, but ended up filing for Chapter 11 bankruptcy on November 11. He resigned and was replaced by John Ray, the liquidator of the energy broker Enron.

Since then, there have been startling revelations about the Bankman-Fried regime, which have been piling up from Ray, and especially from regulators who are trying to determine what caused the bankruptcy of FTX — which was still valued at $32 billion in February — in a matter of days.

On December 13, U.S. regulators — the Department of Justice, the SEC and the Commodity Futures Trading Commission or CFTC — filed a series of criminal and civil charges against the former trader.

Justice Department prosecutors filed eight criminal counts against Bankman-Fried, according to the indictment unsealed on December 13. Four of the charges, including conspiracy to commit wire fraud on customers and lenders and wire fraud, indicate that the alleged acts began as early as 2019. This is the year FTX was founded.

“Bankman-Fried was orchestrating a massive, yearslong fraud, diverting billions of dollars of the trading platform’s customer funds for his own personal benefit and to help grow his crypto empire,” the SEC alleges in its civil complaint.

More articles

Latest article

Dylan Vanas Explores the Intersection of AI, Technology, and Marketing: A Game Changer for Businesses

The business landscape is constantly evolving, and staying ahead of the curve requires embracing innovation and technology. One area that is gaining significant traction...

Album Review: IHSAHN Ihsahn

Ihsahn, chief composer and frontman of the legendary Norwegian black metal band Emperor, gives us his latest opus. This took some three...

Republicans Could Get Destroyed If They Nominate Trump New Data Suggests

A majority of Americans think Trump acted illegally. An overwhelming majority believe Biden legitimately won in 2020, and Trump’s approval rating is...

Gilead Snags Another Cancer Win On The Heels Of Its Best Growth In 7 Years

Gilead Sciences (GILD) followed up a strong quarterly report with a third Food and Drug Administration approval for cancer drug Trodelvy on Friday,...

Should Investors Buy Palantir Stock Instead of Super Micro Computer Stock?

Fool.com contributor Parkev Tatevosian compares Palantir (NYSE: PLTR) and Super Micro Computer (NASDAQ: SMCI) to answer which stock is better for growth stock investors...