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

FTX co-founder Sam Bankman-Fried is escorted out of the Magistrate’s Court on December 21, 2022 in Nassau, Bahamas. 

Joe Raedle | Getty Images

FTX founder Sam Bankman-Fried will be released on $250 million bail, a New York federal judge ruled on Thursday.

The bail terms were agreed to by prosecutors and Bankman-Fried’s lawyers. The former crypto billionaire would also be required to wear an electronic monitoring bracelet, submit to mental health counseling, and would be restricted to the Northern District of California.

The former FTX CEO would also be barred from opening any new lines of credit while awaiting trial.

Bankman-Fried stands accused of perpetrating a multibillion-dollar fraud on his investors, using their funds to purchase properties, fund political donations, and backstop trades at his hedge fund Alameda Research.

Federal regulators allege over $8 billion in customer funds is missing.

Two of his top lieutenants, Caroline Ellison and Gary Wang, pleaded guilty to related fraud charges and are cooperating with law enforcement. Wang and Ellison’s plea deals were revealed on Wednesday.

Bankman-Fried was indicted in the Southern District of New York on eight counts including securities fraud and money laundering, and was rendered from the Bahamas to New York Wednesday evening.

Judge Gabriel Gorenstein said that Bankman-Fried would require “strict” supervision following his release to his parents’ home in California.

His parents, both Stanford Law professors, were present in the courtroom. Bankman-Fried was flanked by two U.S. Marshals, dressed in a suit and tie.

Bankman-Fried’s parents would be required put up the equity in their home to partially satisfy bail conditions.

Bankman-Fried had previously claimed that he was down to a mere $100,000, a steep fall from grace for a man who was once at the head of a $32 billion crypto empire.

The 30-year-old will face his next hearing on Jan. 3, 2023.

This is breaking news. Please check back for updates.

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