FTX founder Sam Bankman-Fried launched a record $250 million

FTX founder Sam Bankman-Fried will be released on $250 million bail and placed under house arrest at his parents’ home in California after his first appearance in federal court in Manhattan.

U.S. District Judge Gabriel Gorenstein signed the deal that saw the accused fraudster voluntarily leave the Bahamas to face a slew of charges including wire fraud, securities fraud, conspiracy, money laundering and campaign finance violations. The combined charges carry a sentence of 115 years behind bars.

She appeared in court wearing a dark gray suit and a 5 o’clock shadow and met with her lawyers Christian Everdell and Mark Cohen, who represented convicted sex offender Ghislaine Maxwell earlier this year, before to start the procedure.

Federal prosecutors had a “location monitoring specialist” on their table and agreed to release Bankman-Fried into the custody of her parents, Stanford University law professors Joseph Bankman and Barbara Fried.

Assistant U.S. Attorney Nick Roos said he believed the bond, which had to be signed by the defendant, his parents and a non-family member, was the “highest pretrial bond” the feds had ever offered never

The deal was prearranged, sources told The Post, and came after Bahamian authorities handed Bankman-Fried, 30, over to U.S. officials on Wednesday after the fallen tycoon agreed to step down at a hearing extradition and face the music in Manhattan. Officials in the Caribbean country had denied Bankman-Fried’s bail application after the suspected crypto criminal was arrested at a resort on the island.

Under the agreement, Bankman-Fried was to turn into pretrial services in the Northern District of California by 10 a.m. Friday, Roos said.

The suspect could leave his parents’ Palo Alto home for exercise and mental health and substance abuse treatment and would be prohibited from making unsanctioned transactions over $1,000, with the exception of legal fees, prosecutors said .

“For bail, you have to consider the weight of the evidence. This was fraud of epic proportions. If that was the only evidence, detention would probably be appropriate. But he voluntarily consented to extradition. should give weight to that,” Assistant U.S. Attorney Nick Roos argued.

“If he had resisted, we would have opposed the release. But their assets have dwindled. This is a financial crime and he no longer works for FTX or Alameda. Therefore, risk to the community is a marginal consideration. We propose a restrictive bail package.”

Bankman-Fried is accused of illegally using investors’ money to buy real estate, finance his trading company Alameda Research and make political donations, a scheme that prosecutors likened to “a house of cards” built “on top of a basis of deception”.

The value of FTX sank from $32 billion to $1 billion after investors made a run for the token when it was revealed that the company used investments in its trademarked token FFT to fund Alameda.

Last month, the former billionaire claimed he had lost his last $100,000, and his parents “told friends that their son’s legal bills will likely wipe them out financially,” according to the Wall Street Journal.

His $250 million bond was 25 times higher than the bond officials demanded from disgraced Ponzi scheme financier Bernie Madoff in 2009.

As Bankman-Fried flew to the United States to face the charges on a private jet Wednesday night, Manhattan U.S. Attorney Damian Williams announced that two of his cohorts had also been charged in connection with the alleged loot and pleaded guilty in secret.

According to prosecutors, Gary Wang, 29, co-founder of FTX, and Carolyn Ellison, 28, the former CEO of Alameda Research and Bankman-Fried’s ex-girlfriend, engaged in wire fraud, securities fraud and merchandise fraud.

This article was originally published by the New York Post and is reproduced with permission.

Originally Posted as FTX Founder Sam Bankman-Fried Launches $250 Million Fine Record

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