FTX founder Sam Bankman-Fried was released on $250 million bond into his parents’ custody on Thursday, The New York Times reports.
SBF, 30, was granted a $250 million personal recognizance bond secured by his parents’ Bay area home.
Under the agreement, SBF will have to live with his parents, Stanford Law Professors Joe Bankman and Barbara Fried, and will have to wear an electronic monitoring bracelet.
SBF will also have to surrender his passport and receive a mental health evaluation.
A court will have to approve any of his expenses over $1,000.
Judge Gabriel Gorenstein warned that if SBF violates any of the conditions, a warrant would be issued for his arrest and he and his parents would be on the hook for the full $250 million.
Prosecutors detail allegations:
Prosecutor Nicolas Roos told the court that SBF committed crimes of “epic proportions.”
Prosecutors charged him with two counts of wire fraud and six counts of conspiracy related to securities and commodities fraud, money laundering, and campaign finance violations.
Prosecutors have called FTX “one of the biggest financial frauds in American history.”
SBF is facing up to life in prison if convicted.
Prosecutors say SBF funneled consumer deposits from FTX to his crypto hedge fund Alameda Research and used customer funds to buy real estate, invest in other companies and donated to political campaigns.
Associates cooperate:
Two of SBF’s associates, Carolyn Ellison, the former CEO of Alameda Research and SBF’s ex-girlfriend, and FTX co-founder Gary Wang pleaded guilty to fraud charges this week and agreed to cooperate with prosecutors.
The Securities and Exchange Commission alleged that Ellison manipulated the price of FTX’s crypto token FTT, which served as collateral for undisclosed loans by FTX of its customers’ assets to Alameda.
The complaint also alleged that Wang created a code that allowed Alameda to divert FTX customer funds.
