According to the latest reports, former FTX CEO Sam Bankman-Fried (SBF) will be placed under house arrest and must surrender his passport.
After his initial appearance Thursday in a Manhattan federal court, FTX founder Sam Bankman-Fried is expected to be released on $250 million bail. He will also be under house arrest at the Palo Alto home he shares with his parents Joseph Bankman and Barbara Fried, prominent Stanford University law professors.
Sam Bankman-Fried released on bail
U.S. District Court Judge Gabriel Gorenstein approved the agreement that the alleged fraudster left his place of residence in the Bahamas to stand trial on a number of offenses, including wire fraud, securities fraud, conspiracy, money laundering and campaign finance violations. A life sentence of 115 years in prison is the potential penalty for these charges.
JUST IN: SBF escorted out of courthouse after posting $250 million bail. pic.twitter.com/rUDyaMWnjD
– Watcher.Guru (@WatcherGuru) December 22, 2022
According to reports, the deal was reached in advance and came after Bahamian authorities handed over the 30-year-old crypto mogul to US authorities on Wednesday. Previously, when the alleged crypto-fraudster was arrested at his Caribbean resort, his bail application was immediately denied.
Sam Bankman-Fried placed under house arrest
According to prosecutors, the suspect would be allowed to leave his parents’ home to exercise, receive mental health care, and undergo substance abuse treatment, but would not be allowed to engage in unsanctioned transactions over $1,000. The only exception being legal bills and related fees.
Assistant U.S. Attorney Nick Roos was quoted as saying,
If he had resisted, we would have opposed his release. But his assets have diminished. This is a financial crime and he no longer works for FTX or Alameda. So the risk to the community is a marginal consideration. We are proposing a restrictive bail package.
And according to the agreement, SBF must report to preventive services on Friday by 10:00 a.m. in the Northern District of California.
The FTX Saga
FTX’s value dropped from $32 billion to $1 billion due to a rush on the FTT token by investors after it was discovered that the company had used customer deposits to fund Alameda Research’s investment bets.
In addition, U.S. prosecutors and regulators allege that since the founding of the FTX cryptocurrency exchange in 2019, Sam Bankman-Fried has been the mastermind of massive fraud; where he was found using customer funds to finance extravagant real estate purchases in the Bahamas, investments in other companies, political contributions and a glamorous marketing campaign.
On Wednesday night, Manhattan U.S. Attorney Damian Williams revealed that two of Bankman-Fried’s associates had also been charged in connection with the alleged scam and quietly pleaded guilty. The announcement was made as SBF flew to the United States on a private jet.