Sam Bankman-Fried outside court on Monday. Photo: Austin Fernander/Tribune staff
By LYNAIRE MUNNINGS
lmunnings@tribunemedia.net
ONE day after being extradited to the United States, Samuel Bankman-Fried, former CEO of the failed cryptocurrency exchange FTX, was released on a $250m bond while he awaits trial on several fraud charges.
At yesterday’s arraignment in New York, Bankman-Fried appeared before Judge Gabriel Gorenstain and was not required to enter a plea.
“Under the bail agreement, Bankman-Fried will be monitored via an ankle bracelet. He was required to surrender his passport and to agree to mental health and substance abuse treatment,” the UK Guardian reported yesterday.
According to the newspaper, Judge Gorenstain warned Bankman-Fried that if he violated any of his bail conditions a warrant for his arrest would be issued and his parents would be responsible for the $250m bond.
Bankman-Fried reportedly spoke once at yesterday’s hearing when asked by Judge Gorenstain if he understood the conditions of his bail and the consequences surrounding it.
According to reports, he responded: “Yes, I do.”
The 30-year-old is faced with eight fraud charges before the Southern District of New York. These include two counts of wire fraud and two counts of conspiracy to commit wire fraud. He also faces charges of conspiracy to commit commodity fraud, conspiracy to commit security fraud, money laundering conspiracy and conspiracy to defraud the United States.
The Guardian reported that Bankman-Fried appeared to be “gaunt” and “tired” during the hearing.
After spending a week on remand at the Bahamas Department of Correctional Services (BDCS), the former crypto giant waived his right to formal extradition proceedings on Wednesday.
In a statement, Attorney General Ryan Pinder said the written consent by Bankman-Fried to be extradited without formal extradition proceedings “satisfies the requirements” of the extradition treaty between The Bahamas and the US and this nation’s Extradition Act.
Bankman-Fried left the country Wednesday night after he was escorted onto a plane at Odyssey Airport by local and US authorities.
FTX, Alameda Research, and “dozens other affiliated companies” filed a bankruptcy petition in Delaware last month after facing a liquidity crisis.
The US Department of Justice and the Securities and Exchange Commission are said to be focusing on whether FTX founder and FTX used customers’ deposits to fund bets and trading activities at his hedge fund, Alameda Research.
Client funds are supposed to be kept separate from company assets, and there were suggestions the FTX founder has committed the “ultimate sin” by tapping into FTX’s custodial assets to fund Alameda Research.
The embattled former billionaire had previously acknowledged mistakes that led to the crypto giant’s downfall, but denied claims of deliberate wrongdoing, as he stated his commitment to restoring funds to customers.
Two of the former FTX CEO’s colleagues pleaded guilty to criminal charges and are cooperating with investigators.
“The hearing comes after federal prosecutors revealed that Caroline Ellison, 28, former CEO of the crypto hedge fund company Alameda Research and Bankman-Fried’s ex-girlfriend, and Gary Wang, 29, a co-founder of FTX, had pleaded guilty to criminal offences connected to the collapse,” The Guardian reported.
Comments
Proguing 1 year, 4 months ago
Remember: always steal enough customer money to have a quarter billion in a secret bank account to post bail
ExposedU2C 1 year, 4 months ago
Actually $4 million, not $250 million. See below.
ExposedU2C 1 year, 4 months ago
D- educated Tribune reporters swallowed the fake New York Times $250 million bail story hook line and sinker, like most dumbed-down Americans did. Federal prosecutors actually let SBF stay out of jail under house arrest based only on the signature of one of his parents who posted a 'signature bond' (not bail) secured by a home in California valued at $4 million.
The new York Times was fed the fake $250 bail story by Federal prosecutors who were deceitfully trying to look tough on the Democrat party's second largest contributor behind George Soros in the last mid-term election cycle. Meanwhile, rumours are all over the internet that Maxine Waters has declared SBF her golden untouchable boy with the blessing of Mitch McConnell. LMAO
Proguing 1 year, 4 months ago
Hmmm ok. In any case it is interesting to see that SBF who was not charged of anything in the Bahamas, was kept in jail, and in the USA where he is being charged, he is free to stay with his parents. I guess this is why he wanted to leave asap.
ExposedU2C 1 year, 4 months ago
SBF's father was a highly paid employee of FTX and should never have been allowed by a Federal court to post $4 million of collateral for a $250 million 'signature bond'. That's just plain wrong and speaks to the degree to which the 'fix'has been put in by the politicians and celebs who are steadfastly refusing to return the stolen funds they were showered with the likes of Maxine Waters leading the charge of wrongful doers.
Bobsyeruncle 1 year, 4 months ago
Judge Gorenstain warned Bankman-Fried that if he violated any of his bail conditions a warrant for his arrest would be issued and his parents would be responsible for the $250m bond.
I don't see what is wrong with this statement. It's common in the US, to only put up a fraction of the sum in cash. However, if the conditions of the bail are not met, then you are responsible for paying the full amount, ($250 million in this instance). In this case his parents would be responsible.
ExposedU2C 1 year, 4 months ago
And of course you, like the corrupt Judge that allowed such a ridiculous 'signature bond' to be posted, believe SBF is not a flight risk notwithstanding the billions of dollars unaccounted for and his close ties to Hong Kong. You must also believe his parents would be good for the difference between their $4 million California home and the $250 million they would have to pay if the Chinese Communist Party helps SBF flee to Hong Kong on a private jet. Then again, you may just believe the 'fix' is in and he will never spend any significant time in a Federal penitentiary because he knows too much and has an 'ínsurance policy' safely tucked away in the cloud. But whatever you may believe, SBF is nothing but a very big time embezzler and swindler who fleeced many innocent people who were conned into opening accounts with FTX by his political and celebrity enablers whom he showered with many stolen gifts.
Bobsyeruncle 1 year, 4 months ago
He turned over his passport to authorities, and assuming he has a good and loving relationship with his parents, I don't think he would look for an illegal passport and then put his parent through financial hell and possibly jail. And, I say again, 'signature bonds' are common in the US.
ExposedU2C 1 year, 4 months ago
LMAO
TalRussell 1 year, 4 months ago
This century's most Bahamian crookest Samuel Bankman-Fried's (SBF) parents pledging of their Home which is only valued at $1.7million. means there was never anything remotely to the $250 million in vale pledged.
Like their son's full of BS garbage status as a Billionaire* tis equal to the smoke and mirrors $250 million, Bail Bond - which amounts no more** than giving the appearance of the Judge being tough with SBF.
You'd thought the New York Judge, would've confiscated SBR Bahamian Passport, --- Yes
ExposedU2C 1 year, 4 months ago
SBF also has a Hong Kong passport, not that needs one to flee there on a private jet at any time to escape a lengthy spell in a Federal penitentiary. His unjustly enriched political friends like Maxine Waters have put the 'fix' in to keep him from serving any serious time in a maximum security prison. And she knows SBF has put an evidence laced ínsurance policy in the cloud that incriminates not only her but many other politicians in both the U.S. and Bahamas.
mandela 1 year, 4 months ago
He needs to enjoy his part-time freedom because he is going to jail for a long long time, in the Bahamian court he might have gotten maybe two years and then free as a bird, well the US don't play that game, when he's convicted he will face at least 100 to 150 years.
TalRussell 1 year, 4 months ago
@Comrade Manoela, our very own Magistrate Judge **was much tougher than the New York Judge was with this century's most Bahamian crookest Samuel Bankman-Fried's (SBF).
Yet still our local magistrate never inquired as to the whereabouts of SBF's Bahamian Passport, ---- Yes?
birdiestrachan 1 year, 4 months ago
What I do not understand is how was he able to fool so many.?
TalRussell 1 year, 4 months ago
@Birdie, same as rest we, how many $20 bills we slide over does depends on how far we take our turns near/at front or back the line.
Be it Driver's License, Police Certificate, Birth Certificate Passport, --- Yes?
ExposedU2C 1 year, 4 months ago
Simple......he had the help of many of your corrupt political friends sucking up to him for a piece of his stolen pie in exchange for many regulatory and other favours, all the while touting how he was a modern-day financial genius.
Bonefishpete 1 year, 4 months ago
Missed opportunity, Bahamas should've kept him and taken say $25 million for bail. Cash of course.
ExposedU2C 1 year, 4 months ago
Maxine Waters and others like her no doubt believe he has many millions of dollars stashed away that they might be able to get their greedy hands on.
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