Disgraced former FTX CEO Sam Bankman-Fried has been released from jail after posting $250m bond in a New York court.
The bond was partially paid for by Bankman-Fried’s parents, Stanford law professors Joseph Bankman and Barbara Fried, who put up equity in their California home. However, the facts are still unclear as to where the remaining funds or other collateral came from, and how much of the $250 million needs to be paid.
According to some widely followed Twitter users, the $250m bond owed by Bankman-Fried hasn’t been paid – and doesn’t need to be paid. Instead, it appears that it is sufficient for the court that Bankman-Fried mortgaged the property for a certain amount of money without actually paying it.
This type of bond is known as a “personal identity bond”.
The same information was shared by other Twitter users as well:
biggest bond in memory
The $250 million bond in the Bankman-Fried case is reportedly the largest ever.
The record was confirmed on NBC News report good, in which US Attorney Nicholas Roush was quoted as saying that the bond was the largest pretrial bond he could remember. The terms of the package were also described by Roos as “overly restrictive”.
$250 million personal identification bond signed by Mr. Bankman-Fried and co-signed by his parents […] Nicholas Biese, a spokesman for the US attorney, was quoted in the same report as saying that her home would be secured by the parent’s equity interest.
Bankman-Fried previously stated that her net worth had dropped to just $100,000 after the collapse of FTX, which would indicate that she did not have anywhere near enough money to pay for the bailout.
“a comfortable abode”
in the New York Post article As of Thursday, the home was described as “a comfortable residence on the edge of Stanford University’s campus in Palo Alto, California.”
The article states that the house is estimated to cost more than $4 million, and is made up of four bedrooms and three bedrooms. It states that the house was built in 1917, and the property is spread over approximately 3,000 square feet.
At her parents’ home, Bankman-Fried will have to wear an electronic monitoring bracelet so officers can keep an eye on her. In addition, he will be required to participate in mental health counseling. He also will not be allowed to leave the Northern District of California as part of the bail conditions.
It’s not clear how a house worth almost $4m can be enough to satisfy a $250m bond.
Carolyn Allison and Gary Wang are “cooperating” with the investigation
as reported, Bankman-Fried appeared before a judge in New York on Thursday after being flown aboard a US government plane from the Bahamas.
Reports have indicated that Bankman-Fried’s former business partners Caroline Ellison and Gary Wang have turned on him, possibly in an effort to get a lighter sentence for themselves.
The fact that the pair were cooperating with the investigation was confirmed in a statement from the US Attorney for the Southern District of New York. The statement said both have “pleaded guilty” to the charges and are “cooperating with the Southern District of New York”.
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