Former FTX CEO Sam Bankman-Fried Granted Bail After Signing $250 Million Bond

Former FTX CEO Sam Bankman-Fried Granted Bail After Signing $250 Million Bond

Sam Bankman-Fried, the former CEO of FTX Crypto Exchange firm, has been granted bail by a US Magistrate Court after he signed a bond of $250 million on Thursday, (December 22). Manhattan’s federal prosecutors have alleged that the FTX founder stole and secretly used billions of dollars from customer funds to assist his other trading business, Alameda Research. Assistant US Attorney Nicolas Roos stated that Bankman-Fried committed “a fraud of epic proportions.” Moreover, he had suggested strict bail terms for Bankman-Fried which includes the bond package.

While granting bail, US Magistrate Judge Gabriel Gorenstein said that Bankman-Fried had “achieved sufficient notoriety that it would be impossible” for him to get involved in any other financial crime and fraud, reported Reuters. The court has scheduled his next hearing to be held on January 3, 2023. US District Judge Ronny Abrams will hear the case on the next given date.

ALSO READ: Royal Bahamas Police Arrests Ex-FTX Founder Sam Bankman-Fried

According to Reuters, US prosecutor, Nicolas Roos said that Bankman-Fried had no flight history and that his financial assets had also decreased. He further said that the bail package will also need him to surrender his passport and remain confined to his parent’s house in Palo Alto, California. In addition to that, he would be required to go for regular mental health treatment and check-ups.

Bankman-Fried was arrested by The Royal Bahamas Police on December 12. He founded the FTX in 2019 and witnessed a boost in valuation to around $32 billion earlier.

ALSO READ: Delhi Saw Highest Crypto Adoption In 2022, Jaipur Lead Tier-2 Segment: Report

Bankman-Fried has stated that he thinks he does not have any criminal liability. Earlier in November, he had said, “I didn’t ever try to commit fraud.” However, in his written testimony, he said, “I would like to start by formally stating, under oath: I messed up.”

FTX had filed for bankruptcy on November 11, following the total collapse of the firm as traders rushed to withdraw $6 billion from the agency within 72 hours. Bankman-Fried has been accused of secretly using about $10 billion of customer funds to help his trading business.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *