Disgraced FTX founder Sam Bankman-Fried to be released on $250m bond

Fallen FTX founder Sam Bankman-Fried will be released on $250 million bail, according to an agreement reached today in a New York City court.

The disgraced financier had recently claimed he only had $100,000 to his name.

He was arrested in the Bahamas last week on a variety of fraud and money laundering charges for what prosecutors have described as one of the biggest financial crimes in US history.

They allege that he used his crypto trading platform as a “personal piggy bank,” convincing investors to dial up their billions with him just to funnel their assets into his own company. His alleged plan was revealed when FTX filed for bankruptcy in November.

Today, a judge agreed to grant him bail, the “largest pretrial amount in American history.”

SBF appeared in court in chains, dressed in a dark suit and tie. He only spoke to confirm that he understood the charges and the bail agreement.

Bankman-Fried’s mother, Barbara, is shown arriving at court on Thursday.

His parents, Stanford law professors Barbara and Alan Bankman-Fried, have agreed to put up the equity they own in his $4 million California home, where he will live during his house arrest, as part of the bail requirement.

Two other people, one family member and one non-family member, will fulfill the rest of the bond. It’s not clear if he should pay the full $250 million or a portion of it.

Bankman-Fried, 30, has been indicted on a variety of fraud and money laundering charges after allegedly stealing $1.8 billion from his cryptocurrency trading platform, FTX, to finance his own life.

Federal prosecutors and SEC investigators say he used the platform as a “personal piggy bank” to finance his own lifestyle.

Bankman-Fried was arrested in the Bahamas last week and extradited to New York, where he appeared before a judge today.

Prosecutors told the court that SBF committed fraud of “epic proportions.” The judge agreed with the prosecution that the “weight of evidence was strong.”

One reason he was confident of posting bail was SBF’s newfound fame: “it has achieved enough notoriety that it would be impossible for it” to hide, he said.

Another term of your bond agreement is to wear an electronic ankle monitor. He is prohibited from opening any new lines of credit, must remain within the Northern District of California, and must undergo mental health counseling after complaining of depression in prior proceedings.

He will return to court on January 3.

His parents, Barbara and Alan, accompanied him to court today and to the Bahamas. It is said that Barbara laughed every time the judge referred to her son as a fugitive.

His parents, Stanford law professors Barbara and Alan Bankman-Fried, have agreed to put up the equity they own in his $4 million California home, where he will live during his house arrest, as part of the bail requirement.

According to a recent report from The Free Washington Lighthousethe couple not only own their $4 million home in Stanford, but also a vacation property in the Bahamas.

It’s unclear how much they paid for the beachfront apartment, but it was part of a $121 million portfolio purchased with FTX funds, according to the report.

He was due to testify before Congress about his failed business, and in leaked testimony he claimed he only had $100,000 to his name, but could make all his investors who lost money “whole again.”

Bankman-Fried’s ex-girlfriend and former CEO Caroline Ellison has reached a plea bargain with prosecutors to avoid charges of her own.

She was facing 110 years in prison on seven tax violations and several fraud charges, but prosecutors agreed not to prosecute her on the most serious charges.

In return, she will cooperate with the ongoing investigation and plead guilty to less serious tax violations, for which she would face a $250,000 fine.