FTX Founder Sam Bankman Freed Released in $250 Million Bond

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A federal judge ruled on Thursday that Sam Bankman Fried, founder of collapsed cryptocurrency exchange FTX, will be released on a $250 million bond after returning to the United States to face a host of criminal charges.

Judge Gabriel Gornstein has agreed to release the 30-year-old based on what government attorneys describe as the “largest pretrial bond ever,” secured against his parents’ home in California, where he will be held. Two other people who have not yet been named – one of whom cannot be a family member – will also be required to secure the bond.

Gornstein said at a packed hearing that lasted just over half an hour that the former billionaire had “achieved a notoriety” that would make it harder for him to flee the United States or commit more crimes.

Bankman Fried, who appeared in court in a dark suit and tie, will also be fitted with a location-tracking bracelet and has already had his passport confiscated. He will be confined to his parents’ home and Northern California area, and allowed outdoors for exercise. He will also be allowed to see a therapist.

Bankman-Fried did not plead the charges against him during Thursday’s hearing. His parents, both professors at Stanford Law School, attended.

“Mr. Bankman Fred committed a fraud of epic proportions,” federal prosecutor Nicholas Ross told the court. He said the government had dozens of witnesses lined up, as well as encrypted text messages and “tens of thousands” of documents that could be entered as evidence.

He noted, however, that Bankman Fried “voluntarily agreed to extradition” from the Bahamas on Wednesday, and that his assets had been “dwindled” to the point where he could no longer easily escape. Bankman-Fried had previously told reporters that it was down to the last $100,000 after FTX collapsed into bankruptcy.

In addition to posting a bond and having his movements restricted, Bankman-Fried was prohibited from making any financial transactions over $1,000 without government permission. He said only three words during the hearing — “Yes, I do” — in response to a judge’s inquiry if he understood the terms of his bail package.

Bankman-Fried was charged by federal prosecutors last week with eight counts — including conspiracy to commit wire fraud against customers and lenders, money laundering and violations of campaign finance laws. If convicted, he could spend the rest of his life in prison.

Bankman-Fried’s legal troubles deepened Wednesday night when the US Attorney for the Southern District of New York announced — while being flown in from the Bahamas — that two of his closest associates had pleaded guilty to fraud charges in connection with the FTX implosion.

Caroline Ellison, who ran FTX trading firm Alameda, and Gary Wang, the co-founder of the same FTX company that authorities accuse of writing the underlying code that harmed the exchange’s regular clients, agreed to cooperate with federal prosecutors on Monday, and they were waived. Their right to obtain a written indictment and an assessment of the charges by a grand jury.

A preliminary conference on the Bankman Fried case is scheduled for January 3.

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