A federal judge-magistrate in New York released disgraced cryptocurrency king Sam Bankman-Fried on $250 million bond today and ordered him to stay with is parents in Palo Alto until he can stand trial.
His parents, Stanford law professors Joseph Bankman and Barbara Fried, secured his release by pledging the equity in their home and securing the assets of two other unnamed people.
The bail was described as a “personal recognizance bond,” meaning the collateral did not need to meet the $250 million bail amount.
Assistant U.S. Attorney Nicolas Roos said in a Manhattan courtroom that Bankman-Fried, 30, “perpetrated a fraud of epic proportions.” Roos proposed strict bail terms including the $250 million bond — which he said is believed to be the largest federal pretrial bond ever — and house arrest at his parents’ home in Palo Alto.
An important reason for allowing bail was that Bankman-Fried, who had been jailed in the Bahamas, agreed to be extradited to the U.S., Roos said.
Reunited with his parents and lawyers inside the courthouse, an apparently silent Bankman-Fried shook the hands of a supporter before heading out the door, where photographers and video crews rushed him until he left in a car.
Magistrate Judge Gabriel W. Gorenstein agreed to the bond and house arrest, though he required that an electronic monitoring bracelet be affixed to Bankman-Fried before he left the courthouse. Roos had recommended it be attached Friday in California.
Bankman-Fried was shackled at the ankles when he entered the courtroom in a suit and tie to take a seat between his attorneys. He did not speak during the hearing except to answer the judge. Near its end, he was asked by Gorenstein whether he understood he would face arrest and owe $250 million if he chose to flee.
“Yes, I do,” Bankman-Fried answered.
Soon afterward, the hearing ended and Bankman-Fried, his hands in his front pants pockets, was led out by two U.S. marshals. His next court date was scheduled for Jan. 3, when he is to appear before the judge who will preside over the case.
His bail conditions also require that he not open any new lines of credit, start a business or enter financial transactions larger than $1,000 without the approval of the government or the court.
The bond was to be secured by the equity in his parents’ home and the signature of them and two other financially responsible people with considerable assets, Roos said. The bail was described as a “personal recognizance bond,” meaning the collateral did not need to meet the bail amount.
Bankman-Fried, arrested in the Bahamas last week, was flown to New York late Wednesday after deciding not to challenge his extradition.
While he was in the air, the U.S. attorney in Manhattan announced that two of Bankman-Fried’s closest business associates had also been charged and on Monday had secretly pleaded guilty.
Carolyn Ellison, 28, the former chief executive of Bankman-Fried’s trading firm, Alameda Research, and Gary Wang, 29, who co-founded FTX, pleaded guilty to charges including wire fraud, securities fraud and commodities fraud.
U.S. Attorney Damian Williams said in a video statement that both were cooperating with investigators and had agreed to assist in any prosecution. He warned others who enabled the alleged fraud to come forward. — From staff and wire reports
Don’t say ‘Stupid’ at Stanford — university publishes guide to eliminating ‘harmful’ language
In which Palo Alto neighborhood do SBF’s parents live?
Why do you want to know?
Why do you care?
Let’s hope there’s a lot of security because there are people who want to kill this guy —- politicians who want to keep donations secret, bankers, account holders. Letting him into Palo Alto is letting a guy with a lit bomb come here.
He’s a flight risk. Electric monitoring bracelets have been slipped off before.
SBF will be in comparable company. Palo Alto, home to the thugs who rip off merchandise at the Apple Store, home to SBF who ripped off investors, home to election- fraud sugar daddy Zuckerberg, home to lockdown queen Sara Cody!
Who comes up with a quarter of a billion in assets to cover their bond? Did the judge go back and find all the money this guy has stolen, allegedly, and verify the money was there?
Your email address will not be published.
The Daily Post has been adjudicated by the Superior Court of Santa Clara County as a newspaper of general circulation in the City of Palo Alto and County of Santa Clara, and is qualified to publish legal notices, including:
• Fictitious Business Name Statements (FBNs)
• Legal name changes
• Petitions to Administer Estate (Probate)
• Notices of Public Sale
• Alcohol Beverage Licenses
• Service by Publication
• Notices of Trustee’s Sale
• Family Law Summonses
Just email or call (650) 328-7700 to place your legal advertisement.
Only a fraction of the local news stories covered by the Daily Post appear on this website. To get all the local news, including many stories you can’t find online, pick up the Post every morning at 1,000 Mid-Peninsula locations.
© Copyright 2008-2022, The Daily Post. All rights reserved. Privacy Policy. Terms of Use.
