Sam Bankman-Fried, the ex-boss of crypto exchange, FTX was extradited to the United States on Wednesday evening. He agreed to return to his country to face the legal proceedings against him. Among other things, he is accused of having used the assets of his clients to make personal investments. The damage is estimated at several billion dollars. The FTX affair is already considered one of the biggest financial scandals in US history.
Biggest bail of all time?
Less than 24 hours after returning to the United States, ex-crypto mogul Sam Bankman-Fried was before New York judges. His first appearance in the case ended late Thursday afternoon and resulted in his release on bail. Lower Manhattan court judges set that bond at $250 million. During the hearing, the magistrates themselves described the bail as enormous. One of the judges indicated that this is probably the largest personal surety of all time. The ex-crypto tycoon’s parents signed the bond document, and pledged properties in Palo Alto, California.
There are many conditions for release by Sam Bankman-Fried. He must live at his parents’ home with an electronic bracelet and another means of electronic monitoring. Judges barred him from opening new lines of credit and starting businesses. He was also prohibited from making transactions over $1,000 except to pay lawyers.
“If you fail to comply with any of the conditions, an arrest warrant will be issued against you and the bond could be confiscated. Release conditions, in particular electronic monitoring, will ensure that the accused will be closely monitored. », warned magistrate Gabriel Gorenstein.
Sources close to the case and present at the hearing, reported that Sam Bankman-Fried only spoke once. It was to tell the judges that he understood their decision.
Sam Bankman-Fried bail controversies
On social media, many members of the crypto community criticized the court’s decision. For some, Sam Bankman-Fried cannot be eligible for bail. This, because of the gravity of the charges which weigh on him. Others mentioned the amount of the deposit, guaranteed by his parents.
To this effect, the famous crypto personality Alexandra Hulk published a tweet in which she questions the ability of Sam Bankman-Fried’s parents to guarantee such a sum.
“There are 60 homes for sale in Palo Alto ranging from $950,000 to $53.9 million. As of December 2022, the net worth of Joseph Bankman [père de Sam, Ndlr] was $5 million. That of Barbara Fried [mère de Sam, Ndlr] was 3.8 million. Sam Bankman-Fried himself still had $100,000. The calculation does not hold water. »she wrote.
For its part, the crypto Youtubeur Bitboy, has questioned about where the money came from and alluded to a conspiracy. Moreover, many have abounded in this direction. For them, Sam will never go to prison, because he was a great support for the American political class.
Recall that Sam Bankman-Fried is charged with two counts of conspiracy to wire fraud, two separate counts of wire fraud and one count of conspiracy to money laundering. Each of these counts carries a maximum sentence of 20 years in prison.
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