In his first court appearance since being extradited from the Bahamas, Sam Bankman-Fried was told he can live with his parents on $250 million bail secured by their Palo Alto house.
After Sam Bankman-Fried appeared in U.S. federal court in New York on Thursday on allegations that he was the brains behind the fraud and unauthorized transfer of customer monies inside his former crypto business, a federal judge decided to grant his freedom. Bail was ordered by the judge at $250 billion.
After his extradition from the Bahamas was approved on Wednesday, Bankman-Fried was taken to the United States by the Federal Bureau of Investigation and appeared in court in New York to face his U.S. criminal charges for the first time. Allegations of fraud, money laundering, and campaign finance violations are at the heart of the lawsuit in the U.S. District Court for the Southern District of New York.
Bankman-Fried’s release was secured by equity in his parents’ Palo Alto, California, home, and a long list of requirements was included for him to remain free while he faces charges. According to the agreement, he is prohibited from engaging in financial transactions worth more than $1,000, is not permitted to establish new credit accounts, is only permitted to leave the house for exercise, and is required to undergo substance abuse and mental health therapy.
Bankman-Fried and his parents were not obliged to post the whole bail sum. A bond can be secured by assets totaling 10% of the bond’s principal. The ex-FTX CEO is prohibited from bail jumping thanks to the extremely large personal recognizance bond, which is supposed to represent the seriousness of Bankman-alleged Fried’s offenses.
Nevertheless, the case’s court ruled that Bankman-Fried must obtain the signatures of at least two more people with “significant means,” one of whom cannot be a family member. Bankman-Fried must do so by a deadline of January 5 regardless of whether he has located the two extra signatures.
Crypto Twitter Reacts
Sam Bankman-$250 Fried’s million bail bond, which enables him to spend Christmas at his parents’ Palo Alto home without having to pay anything up front, has apparently offended Twitter.
Scott Melker, the host of the Wolf of All Streets podcast, tweeted on December 23 that while SBF didn’t have to pay $250 million to avoid going to jail, his parents would have to work 17 more jobs to pay bond if he skips bail.
Vocal Crypto Twitter user Autism Capital elaborated on the matter, explaining that while Bankman-Fried has not had to pay any money upfront, he has put his parents, relatives and non-relatives in a difficult situation.
While the host of the Regulatory Jason Podcast, Jason Brett, tweeted on Dec. 23 that while it might not be fair that SBF is staying in a luxurious home while on trial, he reminded his followers that everyone in the United States is entitled to a fair trial and the presumption of innocence.