The United States District Court for the Southern District of New York set bail at $250 million for former FTX CEO Sam Bankman-Fried. He was released into the guardianship of his parents.
At the December 22 hearing, federal prosecutors described the amount as “the highest ever set in pretrial proceedings,” Decrypt reports.
The agreement did not require actual funds to be posted, and it was framed as a “personal recognizance” guarantee. The founder must appear in court when required, and his release is secured by real estate—his parents’ home in Palo Alto (Santa Clara County, California).
The bail conditions also prohibit financial transactions over $1,000, place him under house arrest, and require an electronic ankle monitor. Breach of the agreement could result in a $250 million liability.
“When a close relative or family member signs the bail documents, the defendant’s failure to appear affects others—the signatories—who are also bound by the terms. … This is a more effective way to ensure the presence of a wealthy person at court,” said Miriam Bayer, a professor of law at Brooklyn Law School.
The court’s decision drew puzzlement from crypto community members. One Twitter user noted Bankman-Fried’s claim that he “has only $100,000.” The Autism Capital account clarified that no funds were required, but if conditions are breached, relatives would bear the burden.
Sam is out on a personal recognizance bail. What this means is that NO MONEY has been paid. His parents put up their home as collateral, one relative and a non-relative have also put up collateral. All of them would be on the hook for $250M if Sam runs. https://t.co/F85qHFVQDQ
— Autism Capital 🧩 (@AutismCapital) December 22, 2022
Crypto trader and host of The Wolf Of All Streets podcast Scott Melker noted that if bail terms are breached, the parents will have to work 17 additional jobs to raise the money.
SBF didn’t have to pay 250m to get out of jail.
Or anything, most likely.
But if he skips bail or doesn’t show up, his parents are going to have to work 17 extra jobs to come up with the money.
— The Wolf Of All Streets (@scottmelker) December 23, 2022
Regulatory Jason Brett, host of the Regulatory podcast, acknowledged that “people are eager to see Sam Bankman-Fried pay for his crimes.” Yet he reminded listeners of the right to due process and the presumption of innocence.
People are impatient to see @SBF_FTX pay for his crimes. However, the reason America is different is how we treat those accused. Is it fair that he gets to be in a luxury home in a warm climate during trial? Life isn’t fair but we can get a shot at the truth of what happened.
— Jason Brett (@RegulatoryJason) December 22, 2022
Earlier, Bahamian authorities arrested Bankman-Fried at the request of the U.S. government. In the course of the probe into the collapse of the exchange, U.S. prosecutors charged him with eight criminal counts.
On December 13, the SEC and the CFTC filed suits against Bankman-Fried.
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