The Chicago Journal

Sam Bankman-Fried to receive bail for $250 million

Sam Bankman-Fried: A federal judge in New York issued a ruling on Thursday that allows the FTX developer to be released on a $250 million bond.

He is in the process of being prosecuted for fraud and other crimes.

The news

Sam Bankman-Fried, his parents, attorney, and court security left the Manhattan US District Court at around 2:00 p.m.

The prosecutors and his attorneys accepted the bail conditions for Bankman-personal Fried’s recognizance.

On January 3 in New York City, Judge Ronnie Abrams will preside over the 30-year-old’s next hearing.

He will enter a plea and answer the allegations there.


A recognizance bond is a written promise from the defendant to appear in court in response to a summons.

After being released, Sam Bankman-Fried won’t be required to meet all of the bail’s collateral requirements.

The bond was signed by his parents and two other people with substantial assets and was secured by the equity in his family’s home.

The prosecution described the $250 million package, which also includes an electronic monitoring bracelet, as the biggest pretrial bond ever.

He must agree to obtain mental health therapy and abstain from going to the Southern, Eastern, and Northern Districts of California and New York.

Read also: FTX and Alameda leaders plead guilty for company collapse

In the court

Judge Gabriel Gorenstein said that after being permitted to return to his parents’ California home, Bankman-Fried would require continued supervision.

The parents of SBF, who are both Stanford law professors, were in the courtroom.

The creator of FTX was surrounded by two US marshals dressed in blue suits and brown shoes.

He swapped his ankle shackles for an ankle monitor while in the courtroom.

Sam Bankman-Fried remained silent until the judge inquired whether he understood the repercussions of breaking the bail conditions.

“Yes, I do,” said SBF.

Furthermore, Bankman-Fried is prohibited from opening new credit accounts with a total balance of more than $1,000.

Federal regulators describe him at his crypto-empire as a “brazen” fraud as they wait for the trial to start.

SBF was at the core of “a fraud of epic proportions” during the court proceedings, according to Assistant US Attorney Nicolas Roo.

SBF, according to Roos, had significantly decreased his financial holdings, had freely returned to the US and had never attempted to run.

Sam Bankman-Fried, a former $32 billion cryptocurrency tycoon, purportedly stated that he only had $100,000 in his bank account.

The outcome was a swift fall from grace for the man.


Sam Bankman-Fried is accused of the following:

  • Perpetrating a multibillion-dollar fraud on his investors
  • Using customer funds to purchase properties
  • Funding political donations
  • Backstop trades at his hedge fund Alameda Research

On Monday, the Commodity Futures Trading Commission brought fresh allegations against SBF, FTX, and Alameda Research.

They claimed that FTX mixed up customer funds and that Bankman-Fried violated the Commodities Exchange Act.

According to allegations, Alameda Research had access to more than $8 billion in client funds.

Since the company’s founding in 2019, FTX client funds have been accessible to and used by Alameda for its operations and activities, including:

  • Trading
  • Funding
  • Investment
  • Borrowing/lending

The SEC’s accusations that Sam Bankman-Fried operated his empire as a scam from the start were echoed by the CFTC.

FTX sought bankruptcy protection in Delaware on November 11.

John Ray III, who succeeded Sam Bankman-Fried as CEO of FTX, said he had never seen such a loss of corporate control.

SBF’s lieutenants

On Wednesday, Caroline Ellison, a former co-CEO of Alameda Research, and Gary Wang, a co-founder of FTX, both pleaded guilty to federal charges.

Gary Wang acknowledged the following allegations:

  • Conspiracy to commit wire fraud
  • Wire fraud
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud

Caroline Ellison had done the following:

  • Two counts of wire fraud
  • Two counts of conspiracy to commit wire fraud
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud
  • Conspiracy to commit money laundering

The public was informed of their plea agreements on Wednesday.

Read also: Sherrod Brown looking to have cryptocurrency banned in the US


The US Attorney accused Sam Bankman-Fried of eight charges, including securities fraud and money laundering.

He was transported by air from the Bahamas to New York on Wednesday night.

SBF has a far higher bond than other federal white-collar defendants.

  • Bernie Madoff obtained a $10 million bail in anticipation of his imminent trial for running a Ponzi scheme.
  • Former Enron CEO Jeff Skilling posted a $5 million bond.
  • Elizabeth Holmes, the Theranos founder, posted a $500,000 bond.


FTX founder Sam Bankman-Fried to be released on $250 million bail, will live with his parents

CFTC piles on new charges against Bankman-Fried, FTX and Alameda

FTX’s Gary Wang, Alameda’s Coraline Ellison plead guilty to federal charges, cooperating with prosecutors