Sam Bankman-Fried (SBF), the founder of the embattled crypto derivatives exchange FTX, will be released on a bail of $250 million, CNBC reported Thursday. Only three days ago, the FTX founder said he would waive his right to fight extradition to the United States.
Last month, the former crypto billionaire claimed that he held only $100,000 left in his bank account. Therefore, it is unclear how he will raise the required sum for his bail. The prosecutors over the case termed the $250 million bond as “the largest-ever pretrial bond.”
SBF Gets Penalized in Court
Judge Gabriel Gorenstein, a federal magistrate judge for the U.S. District Court for the Southern District of New York, presided over the case.
According to a tweet from Liz Claman, a TV host for Fox Business, the FTX boss will not only pay a $250 million bond. He will also face “home detention, location monitoring, and passport surrender.”
SBF will face “strict” supervision as he is held at his parents’ home in California. He will also be mandated to “wear an electronic monitoring bracelet, submit to mental health counseling, and restrict himself to the Northern District of California.
SBF was indicted on eight federal criminal charges, some of which include his involvement in securities fraud and money laundering.
Bankman-Fried will face his next court hearing in New York on January 3, 2023.
Recall that three days ago, SBF mentioned in court in the Bahamas that he agreed to go to the U.S. to face criminal charges. The move conflicted with his stance from last week. He had earlier stated that he would fight extradition.
Former FTX Executives Face Lawsuit
Meanwhile, two other top executives tied to FTX have admitted to charges against them in the U.S.
One of them is Gary Wang, the co-founder of FTX pleaded guilty to wire fraud and other charges. The other individual is Caroline Ellison, the former CEO of Alameda Research. She pleaded guilty to several charges, including two counts of wire fraud and two counts of conspiracy to commit commodities fraud.
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