Sam Bankman-Fried released on $250 million bond

The disgraced cryptocurrency executive has appeared in Manhattan court following his extradition from the Bahamas. He will live with his parents in California.

Sam Bankman-Fried, the disgraced former cryptocurrency executive, was released from federal custody Thursday before a court Manhattan court under very restrictive conditions. bail conditions, including a $250 million bond secured by his parents' interest in their California home and a requirement that he remain under house arrest with them.

It was the latest twist in a fast-paced saga that transformed one of the crypto world's most recognizable paper billionaires into its most significant villain within weeks, establishing comparisons to Bernie Madoff, the notorious fraudster whose money-management operation turned out to be the biggest Ponzi scheme in history. /p>

Mr. Bankman-Fried, 30, appeared in federal court just hours after his extradition from the Bahamas, where he was arrested at a luxury apartment complex on December 12. FTX, the exchange founded by Mr. Bankman-Fried, was based in the Caribbean. nation.

His release also follows the announcement by Damian Williams, the U.S. Attorney for the Southern District of New York, on Wednesday night that two former M Bankman- Fried's companies Caroline Ellison and Gary Wang had pleaded guilty to federal fraud charges and were cooperating with prosecutors. The charges against the executives are likely to further complicate Mr. Bankman-Fried's defense.

The criminal investigation into FTX and its related entities has progressed at a surprising. In less than two months, FTX has gone from a thriving exchange to a bankrupt entity whose executives face criminal charges for some of the most serious violations in the financial world. Prosecutors said Mr. Bankman-Fried's crimes led to the implosion of his exchange and billions in lost customers.

A few months ago at Cryptocurrency enthusiasts hailed Mr. Bankman-Fried as a savior and spokesperson for the shambolic industry, ready to bail out other companies and vouch for crypto's legitimacy to lawmakers. and regulators. Now that his fortune is gone and the charges are piling up, Mr. Bankman-Fried faces what is likely to be a colossal legal fight with few good results.

On Thursday, Judge Gabriel W. Gorenstein warned Mr. Bankman-Fried that if he did not appear in court or violated any of the other bail conditions, a warrant would be issued against him and he and his parents would be responsible for paying the heavy bail. .

The $250 million personal bond - a written promise to appear in court if necessary - will be secured by the parents' home in the Bay Area, said the judge. Mr. Bankman-Fried also had to surrender his passport and undergo a mental health assessment and treatment. All expenses over $1,000 will require prior government or court approval.

As part of bail, Mr. Bankman- Fried will live with his parents, Stanford Law School professors Joe Bankman and Barbara Fried. He will be subject to strict electronic surveillance, in particular a bracelet which was to be affixed to him before his exit from the courthouse. , "Yes, I do", the only words he spoke during the hearing, which lasted less than an hour.

ImageM. Bankman-Fried was charged...