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Sam Bankman-Fried to live with parents after $250 million bail

Image source: Forbes

Sam Bankman-Fried: A federal judge in New York determined on Thursday that the FTX founder might be released on a $250 million bond.

He is presently awaiting his trial on fraud and other accusations.

The news

At 2:00 p.m., Sam Bankman-Fried exited the Manhattan US District Court with his parents, legal counsel, and court security.

The prosecutors and his lawyers accepted the conditions of Bankman-personal Fried’s recognizance bail.

As a result, Judge Ronnie Abrams will preside over the 30-year-old’s next hearing on January 3 in New York City.

He will enter a plea and be charged there.


A written commitment from the accused to appear in court upon request is known as a recognizance bond.

Sam Bankman-team Fried’s will not be obliged to fulfill all bail’s collateral conditions in his return.

The bond was signed by his parents and two people with significant assets, guaranteed by the equity in his family’s home.

Prosecutors claim that the $250 million package, which includes an electronic monitoring bracelet, is the most significant pretrial bond ever.

He also has to consent to mental health treatment and refrain from traveling within and between the Southern & Eastern Districts of New York and the Northern District of California.

Read also: FTX co-founder and Alameda co-CEO plead guilty to charges

In the court

Bankman-Fried will need close supervision after being released to his parents’ California home, according to Judge Gabriel Gorenstein.

The parents of SBF, both professors of law at Stanford, were in the courtroom.

A pair of US marshals in blue suits and brown shoes stood on either side of the founder of FTX.

While in the courtroom, he exchanged his ankle shackles for an ankle monitor.

He spoke only when the judge questioned Sam Bankman-Fried about his understanding of the implications of breaching the bail arrangement.

“Yes, I do,” said SBF.

In addition, Bankman-Fried is forbidden from creating any new credit accounts worth more than $1,000.

At the same time, the case against him for what federal regulators dubbed a “brazen” fraud at his bankrupt crypto empire is being tried.

According to Assistant US Attorney Nicolas Roo, SBF was the heart of “a fraud of epic proportions” in court.

Roos added that he had significantly decreased his financial assets, voluntarily returned to the US, and had never fled.

Sam Bankman-Fried once asserted that he only had $100,000 in his bank account, representing a steep fall from grace for the man who formerly controlled a $32 billion crypto empire.


Sam Bankman-Fried is charged with the following:

  • Perpetrating a multibillion-dollar fraud on his investors
  • Using customer funds to purchase properties
  • Funding political donations
  • Backstop trades at his hedge fund Alameda Research

The Commodity Futures Trading Commission charged SBF, FTX, and Alameda Research with additional offenses last week.

They asserted that Bankman-Fried broke the Commodities Exchange Act and that FTX mixed customer funds.

Alameda Research allegedly had access to more than $8 billion in client funds.

Alameda had accessed and used FTX client monies for its operations and activities ever since the company’s establishment in 2019, including:

  • Trading
  • Funding
  • Investment
  • Borrowing/lending

The CFTC also backed the SEC allegations that Sam Bankman-Fried ran his empire as a fraud from the beginning.

On November 11, FTX applied for bankruptcy protection in Delaware.

Sam Bankman-Fried’s successor as CEO of FTX, John Ray, claimed he had never witnessed a complete failure of corporate control.

SBF’s lieutenants

Gary Wang, a co-founder of FTX, and Caroline Ellison, a former co-CEO of Alameda Research, both entered guilty pleas on Wednesday to federal charges.

Gary Wang pleaded guilty to the following:

  • Conspiracy to commit wire fraud
  • Wire fraud
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud

Meanwhile, Caroline Ellison was guilty of:

  • Two counts of wire fraud
  • Two counts of conspiracy to commit wire fraud
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud
  • Conspiracy to commit money laundering

On Wednesday, their plea deals were made public.

Read also: FTX: Bankman-Fried agrees to be extradited


The US Attorney accused Sam Bankman-Fried of eight charges, including securities fraud and money laundering.

On Wednesday night, he was flown from the Bahamas to New York.

SBF’s bail is far more extensive than other federal white-collar bonds.

  • Bernie Madoff made a $10 million bail while awaiting trial for his massive Ponzi scheme.
  • Jeff Skilling, the former CEO of Enron, posted a $5 million bond.
  • Theranos’s founder Elizabeth Holmes posted a $500,000 bond.


FTX founder Sam Bankman-Fried to be released on $250 million bail, will live with his parents

CFTC piles on new charges against Bankman-Fried, FTX and Alameda

FTX’s Gary Wang, Alameda’s Coraline Ellison plead guilty to federal charges, cooperating with prosecutors