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Investing.com – FTX founder Sam Bankman-Fried will be released on $250 million bail following a settlement between his lawyers and federal prosecutors, a federal judge in New York ruled Thursday.
Last week, federal prosecutors indicted Sam Bankman-Fried, or SBF as he is commonly known, on eight counts, including wire fraud, money laundering and violation of campaign finance rules.
These charges follow the bankruptcy of FTX, a cryptocurrency exchange, founded by Bankman-Fried. FTX has been accused of transferring client funds to cover trading losses from Alameda Research, a trading company founded by SBF.
FTX’s new chief executive, John J. Ray III, who is tasked with recovering client funds, says the cryptocurrency exchange’s crash was caused by “a very small group of grossly inexperienced individuals. and unsophisticated.”
According to the conditions of his bail, Sam Bankman-Fried is required to stay with his parents in California. The bail package includes a $250 million personal bond, which does not require posting bail but a written promise to show up in court as required, was secured by his parents’ home in California.
SBF associates, including Gary Wang, chief technology officer of FTX, and Caroline Ellison, co-CEO of Alameda Research, were allowed to post bond as part of an agreement with the Southern District Attorney’s Office from New York. Wang and Ellison pleaded guilty to federal fraud charges.
By Yasin Ebrahim