Sam Bankman-Fried Will Be Released On $250 Million Bail

Topline

FTX founder Sam Bankman-Fried is set to be released from federal custody after his attorneys struck a deal with prosecutors on a bail amount of $250 million, according to multiple reports, as the disgraced cryptocurrency mogul made his first court appearance Thursday in New York on eight criminal charges over the disappearance of billions of dollars in customer money.

Key Facts

Bankman-Fried will reportedly be confined to his parents’ house in Palo Alto, California.

His parents will reportedly put up equity in their home as part of the bail agreement, but the $250 million is otherwise unsecured.

He will enter a plea on the charges—including wire fraud, conspiracy to commit money laundering and campaign finance violations—at a later date, though he has denied criminal wrongdoing in recent media interviews.

Manhattan-based federal Judge Gabriel Gorenstein ordered Bankman-Fried to wear an electronic ankle bracelet and be put under “strict” supervision while awaiting trial at his parents’ residence, and prohibited him from opening new lines of credit over $1,000, according to CNBC.

Surprising Fact

Bankman-Fried consistently claimed in media interviews following the collapse of FTX last month that the only remaining asset he was aware of was a bank account with $100,000 in it.

What To Watch For

The next court hearing is scheduled for January 3.

Key Background

Bankman-Fried, 30, was extradited to the U.S. from the Bahamas on Wednesday night following several days of confusion over his extradition status after he was taken into custody last week. FTX filed for bankruptcy last month after the company lost billions of dollars in a failed effort to prop up a sister trading firm, Alameda Research, which was headed by 28-year-old Caroline Ellison, who had been romantically involved with Bankman-Fried. Ellison and former FTX executive Gary Wang both pleaded guilty to fraud charges relating to FTX’s collapse and are cooperating with prosecutors on Bankman-Fried’s case, U.S. Attorney Damian Williams said Wednesday night.

Forbes Valuation

Forbes estimates Bankman-Fried’s net worth peaked at $26.5 billion prior to the collapse of FTX.

Further Reading

FTX And Alameda Executives Plead Guilty To Fraud As Sam Bankman-Fried Is Extradited To U.S. (Forbes)

‘I Didn’t Ever Try To Commit Fraud’: Sam Bankman-Fried Responds To FTX Collapse In New Interview (Forbes)

Sam Bankman-Fried Agrees To U.S. Extradition After Chaotic Day In Bahamas Court (Forbes)

Meet Caroline Ellison, The ‘Fake Charity Nerd Girl’ Behind The FTX Collapse (Forbes)