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His customers may have lost billions. The founder of the shady, bankrupt crypto exchange FTX himself, Sam Bankman-Fried, is buying back some freedom on bail of $250 million.
It may be months before he is tried in the United States. But Sam Bankman-Fried has already made his first important appearance before a New York court. According to observers on site, he is said to have said only three words to the judge on Thursday: “Yes, I do” – Yes, he understands the conditions under which he will be released for the time being.
Legend:
Sam Bankman-Fried leaves the courthouse after posting $250 million bail.
REUTERS/Jeenah Moon
The 30-year-old crypto entrepreneur, who was recently very rich, popular and celebrated far beyond the crypto scene, pays a bail of 250 million dollars so that he can live with his parents in California instead of in custody until the trial begins and thus also the upcoming holidays .
His passport has been confiscated and he is being closely monitored. His facial expressions when leaving the courthouse cannot be clearly described: some claim to have seen a smile, others saw a sad, thoughtful young man.
Happy allegations by the public prosecutor’s office
The allegations against him by the public prosecutor’s office and the US Securities and Exchange Commission are steep: fraud, conspiracy, money laundering, embezzlement and whatever other serious financial crimes there are. If the court convicts him, he faces life imprisonment.
And as of today, things aren’t looking good for Bankman-Fried. According to the prosecutor, an alleged accomplice and an accomplice have pleaded guilty this week and want to testify against their former business partner, which could have a mitigating effect on them.
The accomplice is Caroline Ellison, who is said to have had a close private relationship with Bankman-Fried. She is likely to have had deep insight into the machinations of the FTX and is therefore considered a major threat to the main suspect.
Legend:
Sam Bankman Fried and Caroline Ellison
The two used to be in a close relationship, both privately and professionally. In court, she should appear as a key witness and testify against him.
Getty Images/Bloomberg/Lam Yik
The FTX case burned a lot of money
Investors could trade cryptocurrencies on the FTX crypto exchange. After rumors that the exchange was engaging in illegal practices, many withdrew their funds. This brought FTX liquidity problems, which ended in bankruptcy in early November. Experts predict that hundreds of thousands of investors around the world will lose billions in total.
The FTX case shattered confidence in the industry and put prices of almost all cryptocurrencies under pressure. The situation in the already difficult crypto year 2022 was aggravated again. It is unclear how many other companies will also stumble as a result of the FTX insolvency. Bankman-Fried will be able to see this at his parents’ home. His next court date is January 3rd. There he should have to plead “guilty” or “innocent”.