Sam Bankman-Fried, Co-Founder of Cryptocurrency Exchange FTX, Suspected of Multi-billion Dollar Scam, Released on $250 Million Bail in New York Federal Court Yesterday, December 22, Sam Bankman-Fried appeared in federal court in New York, and Judge Gabriel Gorenstein agreed to release him on bail. Bankman-Fried's parents' home in Palo Alto, California was offered as collateral.. Note that under US law, assets worth 10% of the amount of the pledge can act as collateral. Lawyers have also prepared an extensive list of restrictions that Sam Bankman-Freed must not violate in order to remain at large during the investigation.. For example, he cannot apply for new loans and make financial transactions in excess of $1,000.. In addition, he was forbidden to leave the household, except for attending drug treatment and seeing a psychotherapist. Sam Bankman-Fried handed over his passport to the bailiffs and agreed to wear a tracking device. According to Judge Gorenstein, such measures will provide a sufficient degree of confidence that the founder of FTX will not abscond. In addition, given the financial nature of the crimes, Bankman-Freed is unlikely to pose a threat to anyone, the judge said. However, Baker Botts law firm partner Andrew Lankler fears Bankman-Fried's escape is fairly high.. He cited the example of Bernie Madoff, who was arrested in 2008 on charges of creating a $50 billion pyramid scheme.. He was released on $10 million bail.. Madoff subsequently received 150 years in prison and died in custody.. There is a risk that Bankman-Freed will not want to repeat the fate of Madoff and will try to escape. Earlier, Alameda Research top manager Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to fraud. They are cooperating with the investigation.
Sam Bankman-Fried released on $250 million bail
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