Sam Bankman-Fried, ex-CEO of crashed cryptocurrency exchange FTX, has been released on $250 million bail. However, the SBF will be under house arrest and hand over his passport. Meanwhile, a bail-related rumor has jumped the price of FTX Token (FTT).
FTX ex-CEO released on SBF bail
cryptocoin.comAs you follow, the crypto market is following the collapse of FTX and former CEO SBF closely. Sam Bankman-Fried, founder of FTX, appeared in court for the first time in a Manhattan federal court on Thursday. SBF was subsequently released on a $250 million bail. After this news, various rumors began to circulate on crypto Twitter. One of them was the claim that 250 million dollars of bail would be paid by FTT. In the midst of these discussions, with the market in the red, FTT jumped around 40%. However, the altcoin price then started to decline.
U.S. District Court Judge Gabriel Gorenstein upheld the settlement, which saw the alleged fraudster leave his Bahamas residence to face trial on a range of crimes, including electronic fraud, securities fraud, conspiracy, money laundering, and campaign finance violations. The potential penalty for these charges is 115 years in prison. According to reports, the deal was pre-arranged after Bahamian authorities handed over the SBF to US officials on Wednesday. Former Meanwhile, the FTX CEO was previously denied bail when he was arrested in the Bahamas.
Sam Bankman-Fried is under house arrest
He will also be placed under house arrest in his Palo Alto home, which he shares with his parents, Joseph Bankman and Barbara Fried. Both of SBF’s parents are prominent Stanford University Law professors. According to prosecutors, it is possible for the suspect to leave his parent’s home for exercise, mental health and drug treatment. However, he is not allowed to trade more than $1,000 without sanctions. The only exceptions are legal invoices and related fees. US Deputy Attorney General Nick Roos made the following statement on the subject:
If he had resisted, we would have opposed the eviction. But their assets dwindled. This is a financial crime and no longer works for FTX or Alameda. Therefore, risk to society is a marginal concern. We propose a restrictive surety offer.
Under the agreement, the SBF must attend pre-trial hearings in the Northern District of California by 10:00 a.m. Friday.
A collapse legend: FTX
The value of FTX fell from $32 billion to $1 billion as a result of an investor rush to the FTT token after it was discovered that the business was using customer deposits to fund Alameda Research’s investment bets.
What’s more, prosecutors and US regulators allege that SBF has orchestrated the massive fraud since FTX’s inception. His exaggerated real estate purchases and investments in other companies stand out in the Bahamas. It also draws attention to its political donations and a glamorous marketing campaign. Moreover, his use of client funds to finance them reveals the fraudulent nature of the business.
On Wednesday night, Manhattan U.S. Attorney Damian Williams announced that both Bankman-Fried’s aides had been indicted in connection with the alleged fraud and had secretly pleaded guilty. He announced this while SBF was flying to the United States in a private jet.
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