A federal judge-magistrate in New York released disgraced cryptocurrency king Sam Bankman-Fried on $250 million bond today and ordered him to stay with is parents in Palo Alto until he can stand trial.
His parents, Stanford law professors Joseph Bankman and Barbara Fried, secured his release by pledging the equity in their home and securing the assets of two other unnamed people.
The bail was described as a “personal recognizance bond,” meaning the collateral did not need to meet the $250 million bail amount.
Assistant U.S. Attorney Nicolas Roos said in a Manhattan courtroom that Bankman-Fried, 30, “perpetrated a fraud of epic proportions.” Roos proposed strict bail terms including the $250 million bond — which he said is believed to be the largest federal pretrial bond ever — and house arrest at his parents’ home in Palo Alto.
An important reason for allowing bail was that Bankman-Fried, who had been jailed in the Bahamas, agreed to be extradited to the U.S., Roos said.
Reunited with his parents and lawyers inside the courthouse, an apparently silent Bankman-Fried shook the hands of a supporter before heading out the door, where photographers and video crews rushed him until he left in a car.
Magistrate Judge Gabriel W. Gorenstein agreed to the bond and house arrest, though he required that an electronic monitoring bracelet be affixed to Bankman-Fried before he left the courthouse. Roos had recommended it be attached Friday in California.
Bankman-Fried was shackled at the ankles when he entered the courtroom in a suit and tie to take a seat between his attorneys. He did not speak during the hearing except to answer the judge. Near its end, he was asked by Gorenstein whether he understood he would face arrest and owe $250 million if he chose to flee.
“Yes, I do,” Bankman-Fried answered.
Soon afterward, the hearing ended and Bankman-Fried, his hands in his front pants pockets, was led out by two U.S. marshals. His next court date was scheduled for Jan. 3, when he is to appear before the judge who will preside over the case.
His bail conditions also require that he not open any new lines of credit, start a business or enter financial transactions larger than $1,000 without the approval of the government or the court.
The bond was to be secured by the equity in his parents’ home and the signature of them and two other financially responsible people with considerable assets, Roos said. The bail was described as a “personal recognizance bond,” meaning the collateral did not need to meet the bail amount.
Bankman-Fried, arrested in the Bahamas last week, was flown to New York late Wednesday after deciding not to challenge his extradition.
While he was in the air, the U.S. attorney in Manhattan announced that two of Bankman-Fried’s closest business associates had also been charged and on Monday had secretly pleaded guilty.
Carolyn Ellison, 28, the former chief executive of Bankman-Fried’s trading firm, Alameda Research, and Gary Wang, 29, who co-founded FTX, pleaded guilty to charges including wire fraud, securities fraud and commodities fraud.
U.S. Attorney Damian Williams said in a video statement that both were cooperating with investigators and had agreed to assist in any prosecution. He warned others who enabled the alleged fraud to come forward. — From staff and wire reports
In which Palo Alto neighborhood do SBF’s parents live?
Why do you want to know?
Why do you care?
So in order for the 2nd largest donor to the Democratic Party is able to use his parent’s home valued at $4M to secure a $250M bond. Yeah, talk about a dirty judicial system.
Let’s hope there’s a lot of security because there are people who want to kill this guy —- politicians who want to keep donations secret, bankers, account holders. Letting him into Palo Alto is letting a guy with a lit bomb come here.
He’s a flight risk. Electric monitoring bracelets have been slipped off before.
SBF will be in comparable company. Palo Alto, home to the thugs who rip off merchandise at the Apple Store, home to SBF who ripped off investors, home to election- fraud sugar daddy Zuckerberg, home to lockdown queen Sara Cody!
Who comes up with a quarter of a billion in assets to cover their bond? Did the judge go back and find all the money this guy has stolen, allegedly, and verify the money was there?
Well another example of the elite entitlement attitude of the Stanford community, good for me but not for thee. I hope he tries to flee and gets caught and the $250,000,00 is taken from mommie and daddy and rich snobs to help repay the idiots that bought into his scheme.
Thank you for sharing a post, nice to read it, good work keep going
Immediately after the Senate passing the pork-filled $1.7 Trillion Omnibus Bill, Hillary, accompanied by Federal prison guards Michael Thomas and Nova Noel were seen leaving the Bankman-Fried home. Reportedly, Thomas and Noel will be charged with monitoring SBF each half hour and Hillary will supervise food services for the entire family.
After the visit, Hillary was seen entering a mortuary in East Palo Alto. (It was rumored that a last minute amendment to the appropriation legislation included $20Million for a study of the best way to dispose of obese people claiming to be vegan while living near college campuses in Northern California.)
Stay tuned…
It’s easy to pile on Sam Bankman-Fried, but let’s keep in mind that he is innocent until proven guilty. If he committed fraud or stole customer assets, throw the book at him.
Many talk the talk. Bankman-Fried actually created value in the billions before it all collapsed – like many startup companies in a new technology space (though few ever reach $30B valuation). He hired people, made the rounds, developed a blockchain-based identity and financial platform, and convinced some of the best and brightest to invest in it. Whether he broke laws or not,
he will have made make crypto stronger in the long run, like the failed dot-coms of 20 years ago did for the internet.
Hey Alvin, try to stay current. He’s already admitted what he did. It’s remarkable though that a swindler like SBF still attracts suckers after he’s been arrested.
Just like Elizabeth Holmes, right? She created value in the billions before it all collapsed. She hired people, made the rounds, developed a technology and convinced the best and brightest to invest in it. She will make blood-testing better in the future!
Absolutely. Holmes was also a prolific inventor on sample analysis, assay, and medical device patents for diagnosis and treatment, with dozens if not hundreds of issued patents…which meant her ideas were novel and non-obvious in the minds of patent examiners at the Patent Office. She raised hundreds of millions from top venture capital firms while barely in her 20s. Yes, she was young, brash, and got in over her head, but she tried, which very few can say. Life lessons. Her product ultimately failed but her goal to develop a simple blood test to diagnose almost any disease would have saved lives. Hope she tries again.
Alvin, did you happen to be an investor with Bernie Madoff?