FTX founder released on $250m bail

Sam Bankman-Fried founder of FTX, has been released on bail for $250mil, but must remain under strict supervision at his parents house in Palo Alto. The bail is believed to be the largest federal pretrial bond ever.

The 30-year-old appeared on Thursday before a US federal court in Manhattan, after he was extradited to the United States from the Bahamas, where he was arrested on 12 December. SEC announced that they “charged Samuel Bankman-Fried with orchestrating a scheme to defraud equity investors in FTX Trading Ltd. (FTX), the crypto trading platform of which he was the CEO and co-founder. Investigations as to other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.”

His parents two Stanford University law professors, would be liable for the bond, while Sam must submit himself to regular mental health and substance abuse treatment. The only time Sam has spoken during the proceedings on Thursday was when asked if he understood the conditions, replaying “Yes I do.”

Meanwhile, two of Sam’s associates pleaded guilty to defrauding investors in the crypto trading platform and are now co-operating with the US government. As per reports, both Caroline Ellison, former CEO of Alameda Research, and Gary Wang, co-founder of FTX signed plea deals on Monday, which allows them to each post a$250,000 release bond. They faced charges that carried a maximum penalty of 110 and respectively 50 years in prison.

Source: silicon.co.uk