As reported by CNBC, citing the words of US prosecutors, this is the highest bail ever granted in US history. The amount would have to be paid if, say, Bankman-Fried decided to escape. The surety was signed by the parents of the 30-year-old and two of his friends with “significant assets”.
The founder of the FTX exchange will be subject to electronic supervision and will be banned from leaving the country. He will live in a family home in Palo Alto, California.
The man was arrested in the Bahamas early last week, the day before he testified before the US Congress about the bankruptcy of one of the world’s largest cryptocurrency exchanges, FTX.
The exchange, which launched in 2019 and is based in the Bahamas, filed for bankruptcy on November 11 as traders rushed $6 billion from the platform in just 72 hours. It has since been revealed that Bankman-Fried secretly used $10 billion in customer funds to support its business.
Sam Bankman-Fried pleaded guilty to eight counts of fraud, embezzlement and campaign finance violations in New York City in connection with the stock market crash. Separate charges have also been brought against him by the US Securities and Exchange Commission (SEC).
Bankman-Fried used client funds to cover the debts and expenses of his Alameda Research investment fund, according to New York prosecutors. The 30-year-old is also alleged to have donated campaign funds to politicians from both major American parties using so-called as well as from corporate accounts. This is against US law.
“Infuriatingly humble musicaholic. Problem solver. Reader. Hardcore writer. Alcohol evangelist.”