Former CEO of FTX, Sam Bankman-Fried, who is facing multiple charges due to his involvement in FTX’s collapse, is now out on bail. His freedom comes just a day after agreeing to be extradited to the United States. Bankman-Fried’s bail was set at $250 million.
Bankman-Fried is under watch at his parents’ Palo Alto, California residence. He is also wearing an ankle monitor. Additionally, Bankman-Fried had to give up his passport and agree to receive treatment for his mental health and substance abuse.
Judge Gabriel Gorenstein expressed to Bankman-Fried that should he violate bail, his parents would be responsible for the $250 million bond. When asked if he understood his bail conditions, Bankman-Fried, facing eight charges concerning FTX’s collapse, responded, “Yes. I do.”
FTX Collapse: Gary Wang and Caroline Ellison Plead Guilty
FTX co-founder Gary Wang and former CEO of Alameda Research and Bankman-Fried’s ex-girlfriend, Caroline Ellison, have already pleaded guilty to charges against them concerning FTX.
“Both Ms. Ellison and Mr. Wang have pleaded guilty to those charges and they are both cooperating with the southern district of New York. The charges filed against the pair were “in connection with their roles in the frauds that contributed to FTX’s collapse,” says Damian Williams, a US attorney.
Considering his co-conspirator’s guilty pleas, it seems likely that Bankman-Fried will also plead guilty, though time will tell. The trio also faces civil charges from the US Securities and Exchange Commission (SEC) concerning crypto security violations. According to the allegations, Bankman-Fried provided Alameda with a nearly unlimited credit line. The line of credit was funded by FTX users without their consent or knowledge. The two companies allegedly shared bank accounts as well as employees. SEC also alleges that Wang designed FTX software, allowing Alameda to take funds from customers.
“The publicly available information led FTT holders to reasonably expect to share in FTX’s growth and future earnings, and from appreciation in the value of FTT,” states SEC.