FTX founder Sam Bankman-Fried released on ‘largest ever pre-trial bond’
Sam Bankman-Fried has been released on a $US250 million ($375 million) bond package while he awaits trial on fraud charges related to the collapse of the FTX crypto exchange.
Federal prosecutors in Manhattan have accused him of stealing billions of dollars in FTX customer funds to plug losses at his hedge fund, Alameda Research.
Mr Bankman-Fried was not asked to enter a plea on Thursday ((local time).
He has previously acknowledged risk-management failures at FTX, but said he did not believe he had criminal liability.
His defence lawyer, Mark Cohen, declined to comment after the hearing in Manhattan federal court.
Prosecutor Nicolas Roos told US Magistrate Gabriel Gorenstein the bail package would require Mr Bankman-Fried to surrender his passport and remain in home confinement at his parents’ home in Palo Alto, California.
He would also be required to undergo regular mental health treatment and evaluation.
Mr Roos called the package the “largest ever pre-trial bond.”
Mr Bankman-Fried, 30, was arrested last week in the Bahamas, where he lived and where FTX is based, cementing the onetime billionaire’s fall from grace.
He departed the Caribbean nation in FBI custody on Wednesday night (local time).
Mr Cohen said he agreed with prosecutors’ proposed bail conditions.
He noted that his parents — both Stanford Law School professors — would co-sign the bond and post the equity in their home as assurance for Mr Bankman-Fried’s return to court.
“My client remained where he was, he made no effort to flee,” Mr Cohen said.
Wearing a grey suit and leg restraints, Mr Bankman-Fried sat flanked by his lawyers and nodded when the judge informed him that if he failed to appear in court, a warrant would be issued for his arrest.
He spoke only when asked by the magistrate whether he understood the conditions of his release, and that he could be charged with an additional crime if he fails to show up to court.
“Yes I do,” Mr Bankman-Fried replied.
His next court date was set for January 3, 2023 before US District Judge Ronny Abrams.
“I’m going to require strict pretrial supervision,” Magistrate Gorenstein said, with conditions including electronic monitoring and a ban on opening new lines of credit or businesses.
He said Mr Bankman-Fried had “achieved sufficient notoriety that it would be impossible” for him to hide without being recognised or engage in further financial schemes.