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| (Stephanie Keith/Bloomberg) |
Sam Bankman-Fried will be placed under house arrest, require mental health therapy, and be prohibited from doing transactions worth more than $1,000.
Co-founder of the cryptocurrency company FTX Sam Bankman-Fried has been freed after paying a $250 million bond. The case, in which SBF, as it is called internationally, had its maiden appearance in US territory and is accused of eight counts of fraud and conspiracy for the collapse of the exchange, has been approved by federal judge Gabriel Gorenstein. He will now reside at his parents' home while being subject to various forms of surveillance.
According to the magistrate, there is "little risk" of Bankman-Fried escaping, hence there is no "threat to the public in terms of future financial crimes." In this way, he will wear an electronic monitoring bracelet and be placed under house arrest in the Palo Alto, California, home of his parents, who are both Stanford University professors. The bail also included requirements for mental health care, the surrender of guns, and a ban on starting new businesses or engaging in transactions worth more than $1,000 without the government's approval.
The FTX founder was detained on December 13 after the Bahamian government received notice from the US that charges had been brought against him. He was extradited into FBI custody just a week later, a procedure he voluntarily facilitated because, in his own words, he was "wanting to get out" of that prison, which was well-known for its terrible conditions.
In either case, Bankman-Fried is not the only prominent member of FTX who has encountered legal issues. Co-founder Gary Wang and Caroline Ellison, the former CEO of Alameda Research, the investment company they used to create the accounting scheme that would engulf FTX, both entered guilty pleas for their roles in the bankruptcy on Wednesday.
To carry out the process of asset evaluation and liquidation for the benefit of the interested parties in a timely way, FTX stated in mid-November that it has chosen to file for protection under Chapter 11 of the United States Bankruptcy Law. In addition to withholding close to 8,000 million dollars from its clients, FTX owed its 50 largest creditors about 3,100 million dollars (2,919 million euros) in total. No one, not even the seasoned firm liquidator, knows what happened to all that money because of the accounting shambles.
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